Daily Market Review & Financial Analysis

Oil & Gold Rise after Iran Seizes UK Tanker

July 22, 2019

U.S. Stock Market

Pivot : 26,650 Last : 27,219

Review:

U.S. indices closed lower on Friday, following losses across the Utilities, Healthcare and Telecom sectors. The Dow Jones fell by 0.25%, the S&P 500 by 0.62% and the NASDAQ lost 0.74% of its value.

Technical comment:

(Researched by Trading Central): the RSI is mixed with a bullish bias. A pullback to the 20-day Moving Average is likely.

Preference scenario:

Long positions above 26,650 with targets at 27,500 and 28,270 in extension.

Alternative scenario:

Below 26,650, look for further downside with 26,220 and 25,240 as targets.

Resistance 27,500 28,270 28,310
Support 26,650 26,220 25,240

Netflix (NFLX)

Pivot : 337.0 Last : 315.1

Review:

Netflix stock fell 3.11% on Friday, closing at $315.10, with investors nervous about the company's future as Disney prepares to launch its own streaming service.

Technical comment:

(Researched by Trading Central): the RSI is below 30, which could mean either that the stock is in a lasting downtrend or that it is simply oversold and about to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line, the configuration is negative, and the stock is trading under both its 20- and 50-day Moving Averages (at 366.88 and 358.42 respectively). Finally, Netflix has penetrated its lower daily Bollinger band (332.14).

Preference scenario:

The downside prevails as long as 337 is the resistance.

Alternative scenario:

Above 337, look for 352 and 361.

Resistance 337.0 352.0 361.0
Support 289.0 281.0 272.0

Gold

Pivot : 1,435.00 Last : 1,425.31

Review:

Gold prices increased on Friday amid rising tension in the Middle East and higher expectations of aggressive easing by the Federal Reserve.

Technical comment:

(Researched by Trading Central): the RSI is bearish and calls for further decline.

Preference scenario:

Short positions below 1,435.00 with targets at 1,415.00 and 1,406.00 in extension.

Alternative scenario:

Above 1,435.00, look for further upside with 1,441.00 and 1,447.00 as targets.

Resistance 1,435.00 1,441.00 1,447.00
Support 1,415.00 1,406.00 1,400.00

Crude Oil

Pivot : 60.80 Last : 56.26

Review:

Oil prices moved higher Friday on the back of reports that Iran had seized a British-flagged oil tanker.

Technical comment:

(Researched by Trading Central): a break below 50.60 would likely trigger a drop towards 46.70.

Preference scenario:

Short positions below 60.80 with targets at 50.60 and 46.70 in extension.

Alternative scenario:

Above 60.80, look for further upside with 63.80 and 66.60 as targets.

Resistance 60.80 63.80 66.60
Support 50.60 46.70 42.45

Euro (EUR)

Pivot : 1.1300 Last : 1.1218

Review:

The euro slumped against the U.S. dollar as the chances of a rate cut from the European Central Bank (ECB) increased.

Technical comment:

(Researched by Trading Central): the RSI lacks upward momentum.

Preference scenario:

Short positions below 1.1300 with targets at 1.1180 and 1.1115 in extension.

Alternative scenario:

Above 1.1300, look for further upside with 1.1370 and 1.1410 as targets.

Resistance 1.1300 1.1317 1.1410
Support 1.1180 1.1115 1.1000

British Pound (GBP)

Pivot : 1.2625 Last : 1.2507

Review:

The GBP/USD fell, closing at 1.2500, as traders stayed focused on the growing risks of a no-deal Brexit.

Technical comment:

(Researched by Trading Central): a break below 1.2380 should trigger a drop towards 1.2300.

Preference scenario:

Short positions below 1.2625 with targets at 1.2380 and 1.2300 in extension.

Alternative scenario:

Above 1.2625, look for further upside with 1.2780 and 1.2900 as targets.

Resistance 1.2625 1.2780 1.2900
Support 1.2380 1.2300 1.2115

Disclaimer: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading advice. UFX provides Trading Central chart analysis to support clients in their trades, which should be independently evaluated. Past performance is not a reliable indicator of future results. UFX cannot be held liable for any information provided by Trading Central. UFX makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of UFX, a third party or otherwise.