Indices updates by Solidecn.com

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On the daily chart, the third upward wave of the higher level (3) developed, and a downward correction forms as the fourth wave (4). Now, the wave C of (4) is developing, within which the fifth wave of the lower level v of C is developing. 

If the assumption is correct, the price will fall to the levels of 2150.5 - 2034.7. In this scenario, critical stop loss level is 2465.74.

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The Australian stock market continues to trade in a downtrend after releasing poor financial data on major components and growth in the bond market. At the moment, the ASX 200 index is declining around 7038.0.

Corporate reporting remains ambiguous. Thus, the investment bank Macquarie Group Ltd. reported quarterly revenue of 10.80B AUD, well above the forecast of 7.90B, while advertising giant REA Group Ltd. reported revenue of just 278M AUD, below the forecast of 284.8M AUD, and the indicator of the previous quarter of 326.4M. Thus, given that most market participants have already presented their results, support for the index from this segment is not expected, and the main attention of investors will now be turned to the dynamics of bonds.

The global growth in the securities market, preventing the recovery of ASX 200 quotes, continues. So, during today's trading, the yield of popular 10-year bonds of Australia reaches 3.545%, and the rate of return on conservative 20-year bonds is 3.884%, increasing by 1.24% relative to the beginning of the week. Short-term instruments demonstrate more restrained growth, and annual papers are traded with a yield of 2.071%.

The price of the asset moves within the global side channel, approaching the support line. Technical indicators keep a stable sell signal: fast EMAs of the alligator indicator are below the signal line, and the AO oscillator histogram is deep in the sell zone, continuing to form downward bars.

Support levels: 6900, 6500 | Resistance levels: 7175, 7620

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The German stock market shows a slight corrective growth against the backdrop of positive reporting and a decline in the bond market. At the moment, the leading index of the Frankfurt Stock Exchange DAX 30 is being corrected, trading at around 13600.

The day before, investors watched the release of the financial results of Bayer AG, which reported earnings per share of 3.53 euros, which greatly exceeded the previous quarter's figure of 1.26 euros and exceeded the forecast of 2.96 euros. In turn, the company's revenue for the first time since 2015 amounted to 14.64 billion euros, which turned out to be much better than the expected 13.82 billion euros, and also exceeded the figure of the previous quarter at the level of 11.12 billion euros.

In addition, the recent correction in the domestic bond market may contribute to the local growth of the index. Thus, 10-year German Treasuries are trading at a yield of 1.0105%, down from 1.1370% at the end of last week. The conservative 20-year bonds are trading at 1.117%, below the 1.200% shown on Friday.

On the global chart of the asset, the price forms a local Flag pattern, the implementation of which may lead to a continuation of corrective growth. Technical indicators maintain a sell signal: the range of EMA fluctuations on the Alligator indicator is still wide, and the AO oscillator histogram is forming descending bars being near the transition level.

Support levels: 13275, 12420 | Resistance levels: 14240, 15100

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The shares of Snap Inc., the American company that owns the Snapchat messaging service, are falling around 21.

On the daily chart of the asset, a global downtrend is forming, within which the price began to implement the Triangle pattern: the support line at 32 was successfully broken, and now, sell positions can be active.

On a four-hour chart, the price renewed the year's minimum at 24, and now, the main target for the downward movement is around 12.

Technical indicators confirm the high probability of continuing the global decline, maintaining a stable sell signal: indicator Alligator's EMA fluctuations range actively expands downwards, and the histogram of the AO oscillator grows in the sell zone.

 

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The shares of Dupont De Nemours Inc., one of the world's largest chemical companies, are trading lower at 63.

On the daily chart, the price left the global sideways channel of 68 - 85, breaking the support line at 68, after which it consolidated in a downtrend, forming the necessary reverse test. On the four-hour chart, the current decline is developing within the downwards channel, and the quotes approached the support line, which runs around the level of 60.

Technical indicators confirm a high probability of further decline, maintaining a stable sell signal: fast EMAs on the Alligator indicator are well below the signal line, and the AO oscillator histogram is trading deep in the sell zone.

 

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One of the leading indexes of the American economy Dow Jones moves downward around 32080.

The main news of the past week was the statement of the head of Tesla Inc., Elon Musk, that the deal to buy the social network Twitter is temporarily suspended due to verification of data confirming calculations that fake accounts make up no more than 5% of the total number of daily active users. Shares of the service immediately reacted to this with a drop of 25%, although they later partially recouped losses after the entrepreneur, in a new tweet, said that he still intends to complete the deal.

Meanwhile, the yield on the popular 10-year government bonds fell to 2.908% late last week, while the conservative 20-year notes lost just over 1.00% and are now trading at 3.3057%, which is still quite high, so the negative pressure on the stock market remains.

The asset moves within a wide downward channel, approaching the support line. Technical indicators maintain a stable sell signal: indicator Alligator’s EMA fluctuations range is actively expanding, and the histogram of the AO oscillator is forming new downward bars in the sell zone.

Resistance levels: 32550, 34100 | Support levels: 31620, 30000

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On the daily chart, the price is falling within a narrow downwards channel, gradually approaching the support line. The key support is the channel's lower line, which coincides with the initial 61.8% Fibonacci extension trend level at 41.

On the 4-hour chart of the asset, it is clear that the global decline will continue, and the channel support line is only an initial target. The global downside target is the underlying trend of 100.0% for the Fibonacci expansion, around 29. Technical indicators also confirm the high probability of further decline: fast EMAs on the Alligator indicator are much lower than the signal line, and the AO oscillator histogram is forming downward bars in the sell zone.

 

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Visa, technical analysis

The shares of Visa Inc. Class A, the largest American multinational company providing payment transaction services, are corrected at 203.00.

On the daily chart of the asset, a global side channel is developing with the boundaries of 189 - 235, and at the moment, the price has reversed upwards from its support line.

Primary signs of a reversal appeared on the four-hour chart: the price has broken the local resistance around 200.00. Technical indicators also point to a high probability of continued growth: indicator Alligator’s EMA fluctuations range began to actively narrow, fast EMAs are approaching the signal line, and the AO oscillator histogram began to form new rising bars in the sell zone.

 

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The shares of Tesla Inc., the world's leading manufacturer of electric cars, continue their global correction, trading at 709.

On the daily chart of the asset, the price is moving within the global Expanding formation pattern with dynamic extremes at 1150–500. At the moment, the instrument is forming the fifth wave of the pattern, which is one of the two most probable waves.

On the four-hour chart, the rate can already break the low of the third wave at 700.00 today, which will be a signal to continue the downward movement. The readings of technical indicators confirm the likelihood of a decline: fast EMAs on the Alligator indicator are actively moving away from the signal line, and the AO oscillator histogram is forming bars with a downward trend in the sell zone.

 

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Frankfurt's leading index DAX 30 is correcting, trading at 13992.

Quotes of the stock index went down again after the publication of data on the German Producer Price Index, which in April amounted to 2.8%, which is inferior to 4.9% in March. In annual terms, the growth of the indicator amounted to 33.5% after an increase of 30.9% in March. The data reflect the state of German manufacturing companies, which posted rather subdued Q1 2022 financial results last month.

In turn, the domestic bond market is experiencing active growth across the entire line of debt securities. Popular 10-year bonds rose by 2.66%, reaching 0.9640%. Conservative 20-year government bonds rose 1.80%, while the more recently integrated 15-year bonds showed an increase of 1.42%.

On the global chart of the asset, the price forms a local Flag pattern, the implementation of which may lead to continued corrective growth, but so far such a movement seems unlikely, as technical indicators continue to hold a sell signal. The range of EMA fluctuations on the Alligator indicator is directed downwards and the histogram of the AO oscillator is trading in the sale zone.

Support levels: 13663, 12970 | Resistance levels: 14260, 14940

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Global sideways correction in the shares of the American diversified corporation General Electric Co. strengthens, and papers are traded slightly above 75.

On the daily chart of the asset, a wide downward channel with dynamic boundaries of 71 - 90 forms, within which the price has reached the support line and renewed the year’s low around 71.

On the four-hour chart, the price is heading upwards and begins to form a Head and shoulders reversal pattern, which target for working out is around the global channel resistance line 90. The readings of technical indicators confirm the high probability of upward dynamics: fast EMAs on the Alligator indicator are actively approaching the signal line, and the AO oscillator histogram is forming new rising bars in the sell zone.

 

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The shares of Bank of America Corp., one of the largest banks and analytical agencies in the US, are trading within a corrective trend around the level of 36.

On the daily chart of the asset, the price moves within the global downwards channel with dynamic boundaries 29 – 38, declining towards the support line, which coincides with the Fibonacci 61.8% retracement level at 30.

On a four-hour chart, it is clear that to continue the global decline, the instrument needs to consolidate below an intermediate correction of 50.0% Fibonacci around 34. The readings of technical indicators confirm the probability of this scenario: the range of fluctuations of the EMA on the Alligator indicator expands downwards, and the histogram of the AO oscillator forms downward bars in the sell zone.

 

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The shares of Snap Inc., the US company that owns the Snapchat messenger, are moving in a global downtrend around 13.

On the daily chart of the asset, a global downward channel is forming, which emerged from the Triangle pattern, renewing the year's low at 12.8. During yesterday's trading, the instrument formed a downward price gap, making the prospects for upward dynamics practically zero.

On the four-hour chart, it can be seen that although the quotes are near the channel support line, the most likely scenario will be a further decline to the target levels around 4. Technical indicators keep a stable sell signal: indicator Alligator's EMA fluctuations range actively expands downwards, and the histogram of the AO oscillator increases in the sell zone.

 

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The USDJPY continues to decline for the third week in a row and is now in the 127 area.

The American currency was under pressure from market participants' fears of a possible recession, however, US Fed officials and, in particular, the head of the Federal Reserve Bank of San Francisco, Mary Daly, tried to reassure investors, stating that there would not be a serious decline in indicators as a result of a sharp increase in interest rates. Nevertheless, most experts are pessimistic and confident that a slowdown in economic growth cannot be avoided, but how strong it will be is still unclear. Against this background, further steps of the regulator become especially important. Today, the minutes of the last meeting of the Federal Open Market Committee (FOMC) will be published, in which investors will look for information regarding further rate hikes.

The position of the Japanese yen also does not look stable, primarily due to rising inflation, which puts pressure on household demand and business activity. Thus, according to the May data published earlier, the index of business activity in the manufacturing sector of Japan, instead of growing from 53.5 to 53.8 points, fell to 53.2 points, but the index for the service sector rose from 50.7 to 51.7 points, which due to temporary support from the reduction of quarantine measures. The government said in a report released today that the economy is showing signs of recovery, but downside risks due to the negative effects of the coronavirus pandemic in China and the Ukrainian crisis are intensifying. In general, they are taken less seriously by investors than the risks of a recession in the US economy.

The price of the USDJPY pair is near 127 (Fibo retracement of 23.6%), consolidation below which will give the prospect of further decline to the levels of 125 (Murray [4/8], Fibo retracement of 38.2%) and 122.75 (Fibo retracement of 50). .0%). The key for the "bulls" seems to be 129.20 (the middle line of the Bollinger Bands), the breakout of which will allow quotes to continue moving towards 131.25 (Murray [6/8]).

Technical indicators signal the possibility of further decline: the Stochastic is directed downwards, and the MACD histogram is decreasing in the positive zone.

Resistance levels: 129.20, 131.25 | Support levels: 127, 125, 122.75
 

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The shares of Meta Platforms Inc., which owns the world's largest social network Facebook, are trading within a downtrend around 183.

On the daily chart of the asset, a global Triangle pattern is forming with local extremums at 217 and 173, which is a trend continuation pattern, and the breakdown of its lower limit is the most likely scenario now. On a four-hour chart, the trading instrument completes the formation of another downward wave, and after the quotes break the support line at 176, the global decline may continue.

Technical indicators confirm the high probability of negative dynamics reversing downwards: fast EMAs on the Alligator indicator began to move away from the signal line, and the AO oscillator histogram is forming bars with a downward trend in the sell zone.

 

[Solid ECN ✔️]

On the daily chart of the asset, a global downward channel is developing, inside which the price has already overcome the multi-year support level of 85.60 and consolidated below it. Trading activity remains very low, and the average daily volatility does not exceed 230 points. On the four-hour chart, the trading instrument shows a downward trend, being near the channel resistance line passing around the level of 80, and the probability of its breakout is extremely small.

Technical indicators confirm the strengthening of the current wave of decline: fast EMAs on the Alligator indicator are kept at a sufficient distance from the signal line, and the AO oscillator histogram is in the sell zone.

[Solid ECN ✔️]

The shares of The Home Depot Inc, the world's largest home improvement company, are actively declining, trading around 302.

On the daily chart of the asset, a global downtrend is forming, within which the price is holding above the resistance line of the first stage of correction, forming a channel with dynamic boundaries 279–317. On a four-hour chart, it can be seen that the downwards channel is a slowdown stage for the global decline, the continuation of which may lead to a change in trend and the price reaching a local maximum at 339.

Technical indicators began to weaken the sell signal: the range of fluctuations of the EMA on the alligator indicator is actively narrowing, and the histogram of the AO oscillator is forming rising bars, quickly approaching the transition level.

 

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The shares of Alibaba Group Holdings Ltd., one of the largest companies in the world in the field of Internet commerce, are correcting, trading at 92. On the daily chart, a wide downwards channel with dynamic boundaries 70–100 is formed, within which the price is held for a long time near the resistance line, unsuccessfully trying to break it.

On the four-hour chart, the local Triangle pattern is formed, the upper border of which coincides with the resistance line of the global channel around 100.

At the moment, there is no clear signal from the indicators for the subsequent movement yet but, given the factor of the pattern, the growth potential prevails: fast EMA on the Alligator indicator is actively approaching the signaling line, and the histogram of the AO indicator forms upward bars.

 

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S&P 500 is correcting upwards against the backdrop of declining bond yields, trading at around 4190. The US stock market received significant support after the recent reports of large companies.

Shares of the American corporation for the production of computers Dell Technologies Inc. remain among the growth leaders on the back of the publication of positive financial results for Q1 2022. The company reported revenue of 26.12 billion dollars, as well as an increase in operating profit to 1.55 billion dollars. Earnings per share also rose significantly to 1.84 dollars.

Shares of Gap Inc., despite the second quarter in a row with a loss, are also corrected upwards. The clothing retailer reported 3.48 billion dollars in revenue, beating analysts' forecasts of 3.44 billion dollars. The company provided a forecast for the next quarter, in which it assumes a profit and fixation of EPS at 0.419 dollars.

The main reason for the growth of US stock markets is a correction in the bond market. The 10-year Treasury yield fell to 2.743% from 2.861% at the end of last week, while the conservative 20-year government bond rate fell to 3.1629% from 3.2606% last week.

The index quotes are traded in a global downward channel, moving towards the resistance line. Technical indicators start to reverse towards growth: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming new upward bars being in the sale zone.

Support levels: 4095, 3857 | Resistance levels: 4283, 4587
 

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The shares of Caterpillar Inc., the world's leading manufacturer of construction and mining equipment, are trading in a corrective trend around 217.

On the daily chart of the asset, a global Expanding formation pattern is forming, within which the price is in the stage of developing another wave of decline, with the target located at the low of the year 179.

On the four-hour chart, a downward wave is formed within a local channel with dynamic boundaries at 193 – 213. Since it is the fourth in a row, according to the classical scenario of the development of a price pattern, the probability of its complete completion is very high, which is also confirmed by the indicators: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms bars in the sell zone.