Indices Updates by Solid ECN

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Nasdaq 100, the influx of investors into the shares continues

The Nasdaq 100 index shows an uptrend, being at 14665. The US stock market continues to be supported locally by an increase in the number of retail investors trying to diversify their portfolios by directing their capital to assets that have lost the most value in order to escape high inflation.

Netflix Inc. announced a deal to acquire mobile game maker Boss Fight Entertainment as part of the service's strategy to create game content. It is worth noting that there is no information yet on which platforms the development will be carried out for, but experts note that the studio will not be re-profiled and will focus on mobile platforms. The details of the transaction are not disclosed. Earlier in March, Netflix Inc. announced the acquisition of Finnish mobile game developer Next Games for 72 million dollars.

Additional support for quotes of stock indices is provided by the bond market, which has been showing local growth since the opening of trading this week: popular 10-year US Treasuries added 2.48%, 20-year bonds rose by 1.54%, and short-term 3-month bonds were up 6.15% after Friday's close.

The index quotes have left the limits of the narrow downward channel and, having formed a full-fledged reversal, continue to grow. The technical indicators are in the buy signal they gave last week: the range of EMA fluctuations on the Alligator indicator is expanding in the direction of growth and the histogram of the AO oscillator is trading in the buy zone and forming ascending bars.

Support levels: 14410, 13020.
Resistance levels: 15070, 16410.​

 

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Google, the price may grow.

On the daily chart, the upward third wave of the higher level (3) develops, within which the wave 3 of (3) formed. Now, a downward correction has developed as the fourth wave 4 of (3), and the formation of the fifth wave 5 of (3) has started.

If the assumption is correct, the price will grow to the levels of 3030 - 3300. In this scenario, critical stop loss level is 2522.​

 

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Tesla Inc, technical analysis
The shares of Tesla Inc., the world's leading manufacturer of electric vehicles and energy storage solutions, are correcting around 1090.

On the daily chart, the instrument has left the wide downwards channel that began in October 2021. The quotes broke the resistance line around 981, forming a price gap. If we turn to the history of this chart, the broken channel is most likely a Flag trend continuation pattern. According to the theory of its implementation, the initial price move can be up to 100% of its width (up to 2K points).

On the four-hour chart, the rate has reached the previous local high at 1100 and is ready to break it. The readings of technical indicators also confirm the likely continuation of the growth: fast EMAs on the Alligator indicator crossed the signal line upwards, and the AO oscillator histogram moved into the buy zone, forming rising bars.​

 

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DAX 30, German bond market is actively growing​

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European stock markets ended yesterday's trading in the "green" zone after the head of the Russian delegation, Vladimir Medinsky, said that the next round of negotiations with representatives of Ukraine was constructive, and official Moscow is ready to take steps to de-escalate the conflict, which relate to a drastic reduction of hostilities in the Kyiv and Chernihiv directions. Market participants took these statements positively, hoping for a speedy settlement of the situation on Ukrainian territory.

In addition, the DAX 30 quotes are supported by the German bond market, which continues to rise and has been at highs since 2018. Thus, according to the results of yesterday's trading, the yield on 10-year stocks was 0.6385%, and the rate on conservative 20-year debt notes was fixed at 0.6490%, while six-month bonds are actively approaching zero yield, trading at a rate of -0.6230%.

On the global chart of the asset, the price continues to trade within the correction to the previous decline. Technical indicators reversed and gave a signal for the start of purchases: the range of EMA fluctuations on the alligator indicator began to expand in the direction of growth, and the histogram of the AO oscillator moved into the buying zone.
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Resistance levels: 15000, 16250 | Support levels: 14470, 13480

 

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Caterpillar Inc, growth potential remains​

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The stocks of Caterpillar Inc. have been strengthening since the end of February, hitting last week's two-month highs around 225.90. The asset did not experience strong pressure from the negative consequences of the Ukrainian crisis and retained growth potential after the suspension of the corporation's activities in Russia, which brought up to 8% of annual revenue. Moreover, the development of hostilities may positively affect the issuer's profit since the company has a division for the production of defense orders. The United States and several European countries are seriously planning to expand allocations for these purposes. Yesterday, the head of the White House, Joe Biden, presented to Congress a budget plan for the next fiscal year in the amount of 5.79T dollars, which has a record military component of 813B.

Another factor supporting quotes is the US administration's infrastructure programs. According to officials from the national Department of Transportation, the plan is to allocate 2.9B dollars in grants for state and local infrastructure projects, such as expanding and repairing highways, bridges, ports and upgrading public transport. Their implementation will require the involvement of construction equipment and contribute to the sales growth of Caterpillar Inc. products.

The key "bullish" level is 225. Its breakout allows growth to 237.5) and 244.05. The consolidation below 212.50 may lead to a price decrease to the area of 200, 184.30 (Fibonacci correction 38.2%). In general, the indicators reflect the continuation of the upward trend: Bollinger bands are directed upwards, Stochastic tries to reverse upwards, and the MACD histogram is stable in the positive zone.

Resistance levels: 225.00, 237.50, 244.05 | Support levels: 212.5, 200, 184.3​

 

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Amazon Inc, the price may grow.​

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On the daily chart, the third upward wave of the higher level (3) developed, and a downward correction developed as the fourth wave (4). Now, the fifth wave (5) has started to form, within which the first wave of the lower level 1 of (5) has formed.

if the assumption is correct, after the end of the local correction 2 of (5), the Amazon price will grow to the levels of 3759 - 4000. In this scenario, critical stop loss level is 2665.​

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Alibaba Group Holding Ltd, the price may grow.

On the daily chart, the first upward wave of the higher level 1 formed, and a downward correction developed as the wave 2. Now, the third wave 3 is starting to develop, within which the first entry wave of the lower level 1 of (1) of 3 is developing.

If the assumption is correct, the upward dynamics develop to the levels of 182.6 - 232.3. In this scenario, critical stop loss level is 73.5.​

 

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FTSE 100, UK stock market is strengthening​

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The UK stock market continues to try to return to the levels of annual highs that were recorded in early February 2022. In general, everything is quite stable in the corporate segment, except for the fact that yesterday S4 Capital Plc., which provides advertising services, once again postponed the publication date of the financial year 2022, this time due to problems with the audit service. This served as a catalyst for a mass sale of the issuer's shares, after which the quotes lost 36% in value.

In addition, it should be noted that the ongoing period of stabilization in the UK bond market, where 10-year bonds somewhat lost in yield, dropping to 1.668%. 20-year conservative bonds fell to 1.879%, which is slightly lower than 1.957% at the end of last week. In general, the consolidation of the debt market may be a leading signal for the start of a large-scale correction in the stock market.
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Index quotes are trading within the global Expanding Formation pattern. Technical indicators are in a stable buy signal state: 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: 7455, 7200 | Resistance levels: 7645, 7800.​

 

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Dow Jones, the US stock market is preparing for a new decline​

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The US stock market is declining again, the reason for which was the technology sector, whose shares are seriously getting cheaper. Thus, Advanced Micro Devices Inc. stocks lost more than 5.6% due to the negative forecast of Barclays experts and the change of the recommendation to negative. In turn, the quotes of HP Inc. and Dell Technologies Inc. are losing 7.6% and 7.4%, respectively, after Morgan Stanley analysts lowered their forecast for the purchase of shares of these companies.

The US bond market is showing local growth. Thus, the yield rate on 10-year US Treasuries increased by 2.62% and by 1.90% on conservative 20-year securities. Short-term bonds are also rising. The rate on annual treasury securities increased by 1.77%, and on 6-month — by 3.50%.

At the moment, there is not a single company showing growth in the index, and among the least losing in price are Caterpillar Inc. (-0.12%), Amgen Inc. (-0.31%), Coca-Cola Co. (-0.34%), Merck&Co. (-0.42%).

The leaders of the decline are Walgreens Boots Inc. (-5.67%), Intel Corp. (-3.71%), JPMorgan Chase & Co. (-3.00%).
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The index quotes continue to trade inside the descending channel, having reached the resistance line the day before. Technical indicators are ready to reverse and issue a sell signal: the fast EMA of the alligator indicator began to actively approach the signal line, and the histogram of the AO oscillator formed the first descending bar.

Support levels: 34327, 32540 | Resistance levels: 35260, 36410​

 

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Apple Inc, the price may fall.

On the daily chart, the third wave of the higher level 3 developed, within which the wave (5) of 3 formed, and a downward correction develops as the fourth wave 4. Now, the wave (A) of 4 has formed, and the wave (B) of 4 has developed.

If the assumption is correct, the price will fall within the wave (C) of 4 to the levels of 148.43–127.03. In this scenario, critical stop loss level is 182.83.

Microsoft Corp, the price may fall.

On the daily chart, the third wave of the higher level 3 developed, within which the wave (5) of 3 formed, and a downward correction develops as the fourth wave 4. Now, the wave (А) of 4 has formed, and the wave (B) of 4 has developed.

If the assumption is correct, the price will fall within the wave (C) of 4 to the levels of 266.40–219.45. In this scenario, critical stop loss level is 320.45.

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CAC 40, EU markets are trying to recover​

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The French bond market, which is trading in different directions, continues to have a key influence on the dynamics of the indices. Yields on 10-year bonds are down 0.45% and conservative 20-year bonds are up 0.39%, while short-term half-year bonds are down 1.16% and 3-year bonds are down 5.17%.

Meanwhile, in the corporate segment, the fundamental background is not too positive. Sodexo SA, an office services company, confirmed that its key financials forecast will remain at the lower end of the target range, causing the issuer's shares to fall more than 11%.

On Friday, May 6, the Euroapi division, spun off from the pharmaceutical giant Sanofi SA, will start trading on the Paris Stock Exchange.
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The quotes of the asset are traded as part of a global downtrend, rising in the direction of the resistance line. Technical indicators are holding a local buy signal: the range of EMA fluctuations on the Alligator indicator started expanding in the direction of growth, and the histogram of the AO oscillator is trading in the purchase zone while forming local ascending bars.

Support levels: 6533, 5880 | Resistance levels: 6800, 7320​