American Stock Exchange

[Solid ECN]

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The Home Depot​

On the daily chart, the correction is developing within a wide corridor with dynamic boundaries of 350 – 290.

On the four-hour chart, after reaching the support line, the quotes reversed upwards, breaking the initial correction level of 23.6% Fibonacci around 298. Holding the trading instrument above it is a key factor for the continuation of the upward trend, the target of which is the Fibonacci 61.8% retracement level at 315.

Technical indicators are weakening the sell signal: the Alligator indicator's EMA oscillation range narrows actively, and the histogram of the AO oscillator, trading in the sell zone, forms new rising bars.​

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[Solid ECN]

Shares of Pfizer, the largest US pharmaceutical company, are trading around 48. On the daily chart, a global corrective trend is forming, and the price is clamped within the Triangle pattern with dynamic boundaries of 45 – 51.

On the four-hour chart, it is seen that the local decline ended with the support line at 45, after which a reversal was formed, and the quotes of the trading instrument are heading towards the resistance line at 50.3. Taking into account the lengths of local waves, the moment of the pattern implementation will not come soon, and the asset is expected to decline after the end of the current upward impulse.

At the moment, fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming up bars in the sell zone.​

 

[Solid ECN]

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MasterCard, shares set to continue rising​

It became known that Bitso, a dynamically developing cryptocurrency exchange in Latin America, which processes up to 5% of all money transfers to Mexico, has signed an agreement with the issuer: the exchange intends to use MasterCard payment cards, which will support payment for purchases in Mexican pesos.

Investors expect the situation to continue developing with the decision of the International Organization for Standardization (ISO), which on Friday approved the creation of a special code for implementation in all payment systems to track suspicious arms transactions. So far, only Visa Inc. has supported the proposal, but MasterCard Inc. has already commented on the situation, saying that the corporation is carefully studying the initiative since it is focused on conducting operations within the legal framework.

The trading instrument is moving within the global Triangle pattern with dynamic boundaries of 300.00–355.00, forming a new growth wave. Technical indicators are ready to react and are reversing upwards: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram forms upward bars in the sell zone.

Resistance levels: 345, 363 | Support levels: 321.7, 303.3​

 

[Solid ECN]

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McDonald's technical analysis​

Shares of McDonald's Corp., the world's largest chain of fast-food restaurants, correct within a downtrend at 255. On the daily chart, there is a global upward correction, within which a local Head and shoulders reversal pattern is formed with the Neckline at 250. The four-hour chart shows that the price failed to realize it, but this week it may make a second attempt, in which case the support line around 245.00 will act as a local obstacle, consolidation below which will open the way to the main target at 236.

Technical indicators have completely reversed downwards: fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO oscillator histogram forms bars with a downward trend in the sell zone.​

 

[Solid ECN]

Nasdaq 100 - The US stock market continues to decline

One of the world's leading express delivery companies, FedEx Corp., published a preliminary report on the results of the first quarter of fiscal year 2023, saying that its revenue in the period from June to August could fall to 23.2 billion dollars, which is 300.0 million dollars below the forecast. In turn, earnings per share will be around 3.33 dollars, well below the forecast of 5.14 dollars. In addition, the Chief Financial Officer of General Electric Co. Carolina Dybek Happe said that problems in the supply chains of goods remain, and this can have a negative impact on the company's performance in the current quarter.

The index quotes are trading within the wide downward channel, declining towards the support line. Technical indicators maintain a steady sell signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram has formed several new descending bars.

Support levels: 11550, 11000 | Resistance levels: 12178, 12900​

 

[Solid ECN]

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Walmart - Technical analysis​

On the daily chart of the asset, the price is correcting upwards after a significant decline, forming a local ascending channel with boundaries of 132 – 146. Now the quotes have reached the support line of the range, after which an upward wave began. On the four-hour chart of the asset, the price is above the key level of the basic correction of 38.2% Fibonacci around 133 in favor of continuing the positive dynamics, after consolidation above which, the growth may continue to a full correction of 61.8% Fibonacci around 144.

Technical indicators confirm the upward momentum: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram, despite ambiguous fluctuations, is moving in the buying zone.​

 

[Solid ECN]

DAX 40 - German stock market remains under pressure​

The day before, the Association of German Banks (BDB) published an updated forecast for the economic development of Germany, which turned out to be much worse than previous estimates released in the spring. The Association assumes that Germany's Gross Domestic Product (GDP) will increase by 1.4% in 2022 (previously expected to grow by 2.2%), and consumer prices could add 8.0% this year and 6.2% in 2023. In addition, the forecast for Household Spending is also pessimistic, which could rise by 3.3% this year and then decline marginally by 1.2% next year.

On the daily chart of the asset, the price is trading within a Triangle pattern, approaching the support line. Technical indicators have already reversed to the downside and are strengthening the signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, having moved to the sell zone, continues forming descending bars.

Support levels: 12370, 11900 | Resistance levels: 12900, 13450​

 

[Solid ECN]

IBM gives in to negative pressures​

IBM's stock skidded in the intraday levels after the company announced an investment of $20 million in New York in PC devices, hybrid cloud services, AI, and quantum computers, with the stock sliding 2.79%, and settling at 122.23, with trading volumes surpassing 5 million shares, above 10-day averages of 4.4 million shares.

Technically, the stock is hurt by negative pressure from the 50-day SMA, while hurt by piercing the upward trend line recently in the short term, as the RSI reached overbought levels. Therefore, we expect more losses for the stock, targeting the first resistance at 118.80, provided the resistance of 126.30 held on.

Expected trend for today: Bearish​

 

[Solid ECN]

Netflix - Technical Analysis​

Shares of Netflix, an American entertainment company, are on a corrective trend at 230. On the daily chart, the price is showing a poor upward momentum, trying to reach the initial Fibonacci 23.6% retracement at 288. The four-hour chart shows that the potential for upward and downward movement is approximately equal since the quotes are moving in a narrow sideways corridor of 212–250 Soon, the price may test the upper limit of the channel at 250, consolidation above which will open the way to 288.

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[Solid ECN]

DAX 40 - German stock market corrects upwards​

The upward dynamics is fixed against the background of the publication of corporate reports and strong macroeconomic statistics. The index of Economic Expectations in Germany from the Center for European Economic Research (ZEW) corrected to -59.2 points from -61.9 points earlier, and this was the first increase in the index since June. In turn, shares of automakers are actively adding in value after the release of a report on car sales in the EU, which showed growth in September by 9.6% compared to last year. This may be a signal for the start of the recovery of the auto industry after 13 months of stagnation.

On the daily chart of the asset, the price is trading within the global descending channel, rising towards the resistance line. Technical indicators are about to reverse and give a buy signal: fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram has reached the transition level, preparing to move into the buying zone.

Support levels: 12580, 11930 | Resistance levels: 13100, 13560​

 

[Solid ECN]

American Express - Growth is possible.​

On the daily chart, the fifth wave of the higher level (5) develops, within which the wave 3 of (5) formed, and a downward correction ended as the fourth wave 4 of (5). Now, the formation of the fifth wave 5 of (5) has started, within which the first entry wave of the lower level (i) of i of 5 is forming.

If the assumption is correct, the asset will grow to the area of 168.68–199.25. In this scenario, critical stop loss level is 129.89.

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[Solid ECN]

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NI 225 - foreign trade indicators impede the growth of the index​

The leading Japanese stock index NI 225 continues to correct, trading near the level of 26881.0.

According to the latest report from the Japanese Ministry of Finance, Exports in September increased by 28.9% compared to the same period in 2021, amounting to 8.819 trillion yen, while Imports added 45.9%, reaching record 10.913 trillion yen. Thus, Japan's trade deficit has already amounted to 2.094 trillion yen, which is another record both in size and in duration, as the negative trade balance has been maintained for 14 consecutive months. The data released today showed a 0.4% increase in the National Consumer Price Index in September in monthly terms and 3.0% in annual terms. The indicator has been growing for the eighth month in a row, which is beginning to cause doubts among market participants about the continuation of the "dovish" policy and the negative interest rate retention by the Bank of Japan.

On the daily chart of the asset, the price remains within the local lateral corridor, holding near the support line. Technical indicators keep a sell signal despite the local correction: the histogram of the AO oscillator remains in the sell zone, forming new ascending bars, and fast EMAs on the Alligator indicator are below the signal line.

Support levels: 26350, 25500 | Resistance levels: 27400, 28400​

 

[Solid ECN]

Netflix - Growth is possible.​

On the daily chart, the wave А of the higher level formed, and a downward correction develops as the wave B, within which the wave (А) of B formed, and an upward correction of the lower level develops as the wave (B) of B. Now, the wave А of (B) is forming, within which a local correction is developing as the second wave ii of A, and the wave ii of A is developing.

If the assumption is correct, the asset will grow to the area of 362.5 – 423.15. In this scenario, critical stop loss level is 211.

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[Solid ECN]

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FTSE 100 - Results of the elections in the UK pushed the index up​

The day before, Rishi Sunak was appointed the new Prime Minister and head of the Conservative Party with 178 of the 355 members of the Conservative faction in the House of Commons having voted for him. The official managed the British economy during the coronavirus pandemic and analysts believe that he is able to lead the country out of the current crisis. Probably, this news has already been taken into account by the market, since even the negative effect of the publication of a report on business activity, which showed a decrease from 48.4 points to 45.8 points in the Manufacturing sector and from 50 points to 47.5 points in the Services sector could not put pressure on the dynamics of the pound.

Quotes of the index continue to try to start corrective growth. Technical indicators are holding a sell signal, which has noticeably weakened recently.

Support levels: 6920, 6710 | Resistance levels: 7090, 7270​

 

[Solid ECN]

Master Card - Growth is possible.​

On the daily chart, the third wave of the higher level (3) formed, and a downward correction developed as the fourth wave (4), within which the wave C of (4) formed as a momentum. Now, the development of the fifth wave (5) is starting, within which the first entry wave of the lower level i of 1 of (5) is forming.

If the assumption is correct, the asset will grow to the area of 361.86 – 401. In this scenario, critical stop loss level is 277.

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[Solid ECN]

Dow Jones - Correction after the publication of corporate reports​

US stock indicators took advantage of the slowdown in the bond market and continue to grow on the back of positive corporate reporting. Now the quotes of the Dow Jones index are being corrected in the area of 31783.

Index quotes continue corrective dynamics, rising in the direction of the global channel resistance line.

Technical indicators are holding a buy signal, which is gradually strengthening: the range of EMA fluctuations on the Alligator indicator expands in the direction of growth, and the histogram of the AO oscillator is forming new ascending bars in the purchase zone.

Support levels: 31150, 29670 | Resistance levels: 32500, 34200​

 

[Solid ECN]

McDonald’s - Growth is possible.​

On the daily chart, the fifth wave of the higher level (5) develops, within which the wave 1 of (5) formed, and a downward correction ended as the second wave 2 of (5), shaped as double triple w-x-y. Now, the development the third wave 3 of (5) has started, within which the first entry wave of the lower level (i) of i of 3 is developing.

If the assumption is correct, the asset will grow to the area of 280 – 295. In this scenario, critical stop loss level is 231.04.

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[Solid ECN]

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ASX 200 - The stock market is preparing for a downward correction​

A significant part of the filling of the Australian budget is the sale of goods to other countries, and a serious disappointment for the market was that Export prices in the third quarter showed a decrease of 3.6% for the first time since autumn 2020 after rising by 10.1% in the previous quarter, while Import prices remained virtually unchanged, rising 3.0% after increasing 4.3% earlier. Against the backdrop of negative dynamics, investors ignored the rather strong data of today's report on the Producer Price Index, which added 1.9% in the third quarter, and 6.4% in annual terms. The increase in producer prices now has little effect on market sentiment, as it is almost impossible to sell these products at a high price.

The price continues to trade in the global downward channel, having reached the resistance line.

Support levels: 6700, 6440 | Resistance levels: 6870, 7040​

 

[Solid ECN]

S&P 500 - US stock market continues to recover​

The American market continues to correct against the backdrop of corporate reporting and positive expectations of investors regarding a possible reduction in inflation. The S&P 500 is currently trading at 3898.

Experts predict a slowdown in consumer price growth in the US, which will allow the stock market to continue its upward correction. Mike Wilson, a leading analyst at Morgan Stanley banking holding, believes that against this background, S&P 500 quotes may overcome 4100.0 in the near future, as the M2 money supply has fallen sharply over the past month. The analyst is confident that the results of tomorrow's meeting of the US Federal Reserve will also be a catalyst for the upward dynamics in the asset, at which, most likely, a decision will be made on the next increase in interest rates by 75 basis points.

The index quotes continued the local corrective trend, taking a lead from a Head and Shoulders reversal pattern.

Technical indicators maintain the buy signal: the fast EMAs of the Alligator indicator are above the signal line, and the histogram of the AO oscillator is trading in the buy zone, forming ascending bars.

Support levels: 3830, 3630 | Resistance levels: 3950, 4120​

 

[Solid ECN]

FTSE 100 - Growth on the back of positive reporting from the retail sector​

Last Friday, the Bank of England issued a communiqué following its monetary policy meeting, in which it acknowledged that the country had entered a recession. According to the document, in the second quarter, the national economy declined by 0.1%, and the negative dynamics is likely to continue in the future, since analysts' preliminary estimates contain a scenario with a correction of Gross Domestic Product (GDP) by -0.5%. Department officials believe that the recession could last up to eight quarters, while inflation will peak at around 10.9% by the end of this year.

The index quotes continue corrective growth, having reached the resistance line of the descending channel. Technical indicators are holding a buy signal that keeps getting stronger: the fluctuation range of the Alligator indicator EMAs is expanding and the histogram of the AO oscillator is forming ascending bars, retreating from the transition level.

Support levels: 7231, 7000 | Resistance levels: 7383, 7558​