Daily Market Review & Financial Analysis

Strong Earnings Boost Shares

April 26, 2017

U.S. Stock Market

Wall Street traded higher on Tuesday as strong earnings boosted shares. The Dow Jones rose by 1.12%, the S&P 500 by 0.61%, and the NASDAQ added 0.70% to its value. Technically, according to the Daily chart, the NASDAQ is holding above the 50-day Moving Average line. This condition may lead to a rise towards higher areas around 5,700, but alternatively, dropping below the line could take the index back towards 5,250.

Caterpillar (CAT)

Caterpillar rose 8.08%, closing at $104.64. Technically, according to the Daily chart, the share has successfully crossed above the upper band of the channel, as a better than expected Q1 report supported the share. Holding this condition, it is expected to continue rising towards $110.00, but dropping back into the channel might lead to a strong drop towards the lower band around $89.50.

U.S. Dollar (USD)

The U.S. Dollar traded lower against the other major currencies with the release of mixed U.S. economic data and the continuing rally on the euro. The CB Consumer Confidence came out lower than expected at 120.3 vs 123.7 forecast, while the New Home Sales came out higher at 621K vs 590K forecast. Today, the Core Retails Sales is expected at -0.2% vs 1.7% previously.

Gold

Gold fell, closing at $1262 an ounce. Technically, according to the 4-hour chart, gold is trading above the support line at $1260. This could return gold to higher areas around $1275, while breaking below the line may lead to a strong retracement and a fall to around $1250.

Last: 1263

   Resistance
   Support
1268 1270 1275
1260 1255 1250

Crude Oil

Crude Oil rose, closing at $49.29 a barrel, as a report from the Energy Information Administration is expected to show a drawdown in U.S. crude inventories. Technically, according to the 4-hour chart, oil is trading below the resistance line at $50.10 with a negative RSI indicator below 50. Holding these conditions should push it lower to around $48.50, while breaching the line may take it up towards $51.00.

Last: 49.48

   Resistance
   Support
50.10 50.50 51.00
49.20 48.70 48.50

Euro (EUR)

The euro rose versus the dollar on Tuesday as the first-round results of the French presidential election continued to support the currency. Technically, according to the 8-hour chart, the EUR/USD is holding above the upper band of the triangle pattern. Maintaining this condition, it is expected to continue rising towards 1.1050. But falling back below the upper band may drop it to the lower band of the pattern at 1.0700.

Last: 1.0933

   Resistance
   Support
1.0950 1.1000 1.1050
1.0850 1.0800 1.0750

British Pound (GBP)

The Pound traded higher against the dollar, closing at 1.2830. Technically, according to the Daily chart, the pair is trading above the support line at 1.2740 with a positive Momentum indicator above 0. This could lead to a rise towards 1.2900, but breaking below the line may start a strong reversal to around 1.2600.

Last: 1.2830

   Resistance
   Support
1.2850 1.2870 1.2900
1.2740 1.2650 1.2600

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