Daily Market Report by GulfBrokers 2020-2021

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The package-delivery giant FedEx (NYSE: FDX) stock have fallen more than 12% since the last earnings announcement. At the time of writing, the $FDX stock trading was almost 3% lower in the pre-market trading. The stock reached a fresh 52-week high of $320 on May 21st, 2021.

While considering the recent sell-off I believe the stock can get its momentum back if the company reports better-than-expected earnings results. FedEx reports its fiscal 2022 first-quarter earnings on Sep. 21 after the market close. The company is expected to post quarterly earnings of $5 per share and revenues are expected to be $21.9 billion. FedEx has generated both higher revenues as well as higher earnings during the most recent quarter, its fiscal Q4.

HASH


The short-term resistance is located in the area of $260, a break above $260 will confirm a possible move to the $265 and $270. On the downside, if the stock loses the $245 handle, then we expect a move toward $235.

In the long term, watch for the important breakout at $230 and $280, which will give a larger confirmation of direction in the long term.

Trading is risky and your entire investment may be at risk. Please ensure that you fully understand the risks involved.

Read more- https://gulfbrokers.com/en/stock-to-watch-this-week-fedex
 
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England’s most-legendary soccer team Manchester United PLC (NYSE: MANU) shares holding the previous week gains. The soccer club announced mixed fourth-quarter results On Friday, 17 September. The club posted a quarterly loss of £107.7 million, while revenue climbed 15% to £94 million.

Manchester united stock received strong bullish momentum recently after the Portuguese star Cristiano Ronaldo return to Old Trafford. $MANU has risen more than 6% since the beginning of the year.

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EQUITIES

US stock futures and European shares rebounded from the previous session global stock market selloff weighed down by the Evergrande Group’s solvency challenges and rising Covid-19 cases. While Asian markets are mixed with Mainland China and South Korea closed today.

On the earnings front, FedEx, Adobe and AutoZone are amongst those reporting the last quarter financial results today.

OIL

Crude oil price slightly recovered from the early session losses ahead of API crude inventory data. Meanwhile, Oil investors remain concerned about the economic slowdown, due to the fast-spreading Delta variant of the coronavirus.

CURRENCIES

In the currency market, the US dollar Index pause the upside momentum ahead of the FED meeting. The Index retreated back to near the short-term support area of 93.10 after it failed to break above the 93.45 resistance level.

GOLD

The safe-haven metal up for the second consecutive day supported by the rising uncertainty with regards to China’s Evergrande. Overall, the momentum remained bullish throughout the European session.

Economic Outlook

On the data front, the Reserve Bank of Australia released the last meeting minutes. The minutes revealed that the central bank still expects to keep rates at 0.1% until at least 2024 as its struggles to lift wage growth and inflation.

While RBA governor Philip Lowe said recently, he expects the economy to contract by at least two per cent in the September quarter as a result of virus lockdowns in NSW and Victoria.

Moving ahead today, the important events to watch:

US – Building permits: GMT – 12.30

US – Housing starts: GMT – 12.30

Coronavirus update:

Worldwide, more than 224 million people have been confirmed infected and more than 4.6 million have died. The United States has confirmed over 40 million cases and has had more than 659,900 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
Technically the overall trend still looks bearish, and the short-term support is still around 1.1700. If the pair breaks and closes below 1.1700 the next important support is at 1.1680/1.1660.

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The important levels to watch for today: Support- 1.1700 and 1.1685 Resistance- 1.1750 and 1.1770.



GOLD: The yellow metal trading above $1765. If the bullish momentum continues the next upside levels to watch $1770 and 1774. On the downside, the immediate support is around $1755 followed by $1750.

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The important levels to watch for today: Support- 1760 and 1754 Resistance- 1770 and 1775.

Quote of the day- To make money in stocks you must have the vision to see them, the courage to buy them, and the patience to hold them – Warren Buffet.

Read more- https://gulfbrokers.com/en/daily-market-report-377
 
Gold price steady above $1770. If the momentum continues then the next upside levels to watch 1782/90. On the downside, any meaningful pullback now seems to find some support near the 1766 zones, below which the slide could further get extended towards the 1758/50 regions.

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EURUSD remains under pressure ahead of the FOMC meeting. The key support area to watch today is 1.1680. The currency pair has been moving lower since June, largely due to a broad strengthening in the US dollar.

In the short term if the pair break below the support 1.1700 the next immediate downside area is to watch is near 1.1680/60. On the other side, if the price break and closes above 1.1750, the next level is to watch is 1.1770 and then 1.1800.

EQUITIES

US stock futures struggling to find the upside momentum as investors remain cautious ahead of the US Federal Reserve's policy meeting. Market participants expect the Fed to make a formal taper announcement in November, possibly starting in December at a pace of USD 15 billion per month.

OIL

Crude oil prices climb to a fresh session high on Wednesday boosted by better-than-expected API inventory data. The data showed the US crude stocks fell by 6.108 million barrels in the week ended September 17th of 2021.

CURRENCIES

In the currency market, On the other hand, the dollar index trading unchanged on Wednesday. The safe-haven currency remains supported by the concerns regarding the health of Chinese property tycoon Evergrande, crippled by over $300 in accumulating debt.

GOLD

The safe-haven metal holding the previous session gains. Moving ahead, the gold trades should closely monitor Wednesday’s FED decision for clues on the timing of forthcoming changes to Fed policy settings.

Economic Outlook

On the data front, the Bank of Japan decided to keep its monetary policy unchanged. The bank left its key short-term interest rate unchanged at -0.1% and kept the target for the 10-year government bond yield at around 0%.

The central bank expects the level of economic activity to remain weak, especially in the face-to-face service sector, heavily affected by the pandemic and the continuing states of emergency

Moving ahead today, the important events to watch:

US – Existing home sales: GMT – 14.00

US – EIA crude inventory data: GMT – 14.30

US – FOMC interest rate decision and statement: GMT – 18.00

Coronavirus update:

Worldwide, more than 224 million people have been confirmed infected and more than 4.6 million have died. The United States has confirmed over 40 million cases and has had more than 659,900 deaths from COVID-19, the highest totals in the world.

Technical Outlook

GBPUSD:
The currency pair hits a fresh weekly low of 1.3630 on Wednesday. The currency pair needs to stay above 1.36; otherwise. 1.3560/40 may be visible soon.

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The important levels to watch for today: Support- 1.3600 and 1.3580 Resistance- 1.3660 and 1.3690.

GOLD: The precious metal trades steady above $1770. If the bullish momentum continues then the next upside level is to watch $1782 and $1788. On the downside, any meaningful pullback now seems to find some support near the $1766 zones, below which the slide could further get extended towards the $1758/50 regions.

gold neww


The important levels to watch for today: Support- 1766 and 1754 Resistance- 1782 and 1790.

Quote of the day- “A lot of people get so enmeshed in the markets that they lose their perspective. Working longer does not necessarily equate to working smarter. In fact, sometimes it is the other way around.” - Martin Schwartz.

Read more- https://gulfbrokers.com/en/daily-market-report-378
 
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The US Federal Reserve left the interest rates unchanged on Wednesday and continued with its asset purchase program. The Fed sees the economy growing 5.9% in 2021, less than 7% in the June projection.

Federal Reserve Chairman Jerome Powell signalled the central bank may announce a pullback of its bond purchases in November and could start to raise interest rates in 2022. Powell also said that the Fed was pushing ahead with its research into implementing its digital currency.

EQUITIES

European shares ignore weaker-than-expected PMI data and the stocks were steady at the start of trading on Thursday. Meanwhile, US stock futures extend gains supported by the hawkish comments from Fed Chair Powell.

OIL

Crude oil prices extend higher boosted by stronger than expected decline in US crude inventories. On Wednesday, the EIA inventory data showed the US crude oil inventory stocks fell almost by 3.5 million barrels in the week ending September 17th.

CURRENCIES

In the currency market, the British pound struggling to find upside momentum ahead of the BOE meeting. The central bank is expected to keep its benchmark interest rate at a record low of 0.1% and its bond-buying program unchanged at a total of GBP 895 billion by the end of this year. The BOE is one of the first leading central banks that has committed to winding down its QE program by the end of 2021.

GOLD

The safe-haven metal reversed from the previous session highs weighed down by the strong US dollar. The metal is expected to remain under pressure as the FED revealed its plans to increase interest rates sooner than expected.

Economic Outlook

On the data front, Germany and Eurozone reported weak PMI numbers. Germany Manufacturing PMI fell to 58.5 in September from 62.6 in August. Eurozone Manufacturing PMI dropped to 58.7 in September from 61.4 in August.

Moving ahead today, the important events to watch:

UK – BOE interest rate decision and statement: GMT – 11.00

US – Jobless claims: GMT – 12.30

US –Manufacturing PMI: GMT – 13.45

Coronavirus update:

Worldwide, more than 226 million people have been confirmed infected and more than 4.7 million have died. The United States has confirmed over 41 million cases and has had more than 660,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
The currency pair slightly recovered from the previous session losses. If prices settle above 1.1650, we may witness short term recovery to above 1.1750/80. If it breaks and close below 1.1650 then will see a further bearish move to 1.1630/10.

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The important levels to watch for today: Support- 1.1700 and 1.1660 Resistance- 1.1750 and 1.1770.



GOLD: Technically the overall trend still looks bearish after the previous session selling pressure and the short-term support still around $1760. If the metal breaks below $1760 the next important support at $1754/45.

gold neww


The important levels to watch for today: Support- 1760 and 1754 Resistance- 1772 and 1780.

Quote of the day- To be a better investor, you have to stand on your own. You just can’t copy other people’s insights – Li LU.

Read more- https://gulfbrokers.com/en/daily-market-report-379
 
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The video streaming pioneer Netflix (NASDAQ: NFLX) shares pause the longest winning streak. The stock has been on an incredible run, up more than 53% since the start of the pandemic.

NFLX stock has dropped roughly 8% of its value in the past two weeks. While on Wednesday, Sep 22 $NFLX recovered some of its early losses and closed 4% higher after Netflix acquired the works of Roald Dahl. The acquisition gives the company exclusive rights to the stories and characters of the beloved children’s author, who died in 1990. The current price action of $NFLX indicates a stalemate situation between the buyers and the sellers.

NFLX Q3 results – it’s all about subscriber numbers

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Subscribers are, after all, Netflix’s main source of revenue. In the earlier days of the pandemic, streaming was on the rise and Netflix gained millions of new subscribers during this period as Covid-19 forced people around the world to stay home. The streaming video market is estimated to grow by around 18% per year over the next few years.

Netflix added just 1.5 million customers worldwide for the second quarter of 2021 and finished the quarter with over 209 million paid memberships. Netflix lost 430,000 subscribers in the US and Canada during those three months. One of the main reasons Netflix subscriber growths slowed recently is due to the wave of competition from new rivals like Disney Plus, Sling and HBO Max.

Netflix’s third-quarter earnings report, which is scheduled to be released on October 19, 2021. However, if subscriber growth surprises on the upside, then the stock price is likely to continue the strong upside momentum. Recently, the streaming giant released the new seasons of hit shows "Money Heist" and "Lucifer," and Volume 2 of the final season of Money Heist will be released worldwide On December 3, 2021.

$NFLX stock short-term technical analysis

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In the short term, considering heavy volatility there are chances the stock can rally back to above the all-time high of $615. On the downside, the decline is more extensive, and it will be hard to rule out a run towards $550 and $530 if the stock breaks below $568. The expected trading range for $NFLX for the next two weeks is between $530 support and $620 resistance.

Read more here - https://gulfbrokers.com/en/netflix-stock-snap-winning-streak-volatility-expected-to-follow
 
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Euro/US Dollar hits its lowest level since November 2020, amid growing concerns that the Federal Reserve will taper stimulus from November and start hiking rates next year. The US dollar index 1-year high on Thursday following the release of US GDP data and Fed Chair Powell reiterated his view that a rise in a surge in inflation is transitory.

Meanwhile, the currency pair slightly rebounded during the early session but failed to hold the bullish momentum after the release of weaker-than-expected German economic data. Germany Manufacturing PMI came slightly lower to 58.4 in September from a preliminary of 58.5.

Moving ahead to the North American session, the main attraction for EURO today:

  • US – PCE inflation: GMT – 12.30
  • US –ISM Manufacturing PMI: GMT – 14.00
eurusd


EURUSD hovers near 1- year low as the US dollar index holding the previous month gains. However, considering the recent sell-off near-term pullbacks from 1.1650 support remain corrective in nature. So, in the short term, the pair may rebound towards 1.1620 and 1.1660 resistance levels. A breakdown through 1.1550 would negate that bias and suggest a test of the 1.1500 and 1.1480 support regions. In the long term, I expect 1.1500 and 1.1920 are the key technical levels to watch.

Read more- https://gulfbrokers.com/en/eurusd-time-to-retrace
 
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This week the traders and investors will pay attention to the U.S. unemployment report for September is due Friday. As we know the November Fed taper announcement is widely expected so the Fed will be looking at the September US jobs report very closely, if the NFP comes stronger-than-expected which likely accelerating the pace of tapering. The NFP expectations are for 460k jobs to have been added to the US economy in September and a decline in the unemployment rate to 5.1% from 5.2%.

On the earnings front, the companies due to release their results will be The food and beverage company PEPSO and the jeans maker LEVI STRAUSS will be among those reporting earnings this week.

GOLD

The precious metal started the new week on a positive note, amid reports that the US House Democrats delayed plans to vote on a $1 trillion infrastructure bill as no deal has been reached yet. Overall, the metal momentum remained bearish throughout last month after the U.S. Federal Reserve suggested it would soon begin to taper its bond purchases ahead of a likely interest rate increase.

gold neww


On the weekly time frame, the gold is currently supported at $1720 and the resistance is around $1790. If the metal continues to fall this week, the key support level is $1750 and $1720/00. On the upper side, in case the metal manages to settle above $1780, it will gain upside momentum and head towards the next resistance level at $1792/1800.

DOLLAR INDEX

The US dollar was one of the strongest currency pairs in September and reached its highest level since Sept. 28 last year. The bullish rally was driven by the worries about a slowing global economy, higher inflation and fears of contagion from debt-laden property developer China Evergrande Group.

DXY


in the short-term perceptive, the immediate bias will remain bullish as long as prices are held above 93.90. On the flip side, any break below 93.90 then the next support near the 93.50 followed by 93.20 level.

EURUSD

The currency pair slightly rebounded on Friday after the US dollar Index recorded losses for the second consecutive day. During the last week, the pair plunged to $1.1563, its lowest since July 2020.

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For this week, the pair supported at 1.1550 level, any break below this level will open the doors to 1.1530 and 1.1500. On the other side, the EURUSD trying to move above the short-term resistance level at 1.1615. In case this attempt is successful, it will head towards the resistance which is located at 1.1640. A move above 1.1640 will push the pair towards the key resistance area 1.1690/1.17.

DOW JONES

Dow Jones remains undecided as to which way its next directional break will be. Meanwhile, it recovered part of its loss on Friday boosted by higher energy prices and pharmaceutical company Merck saying its experimental coronavirus pill reduces the risk of death and hospitalization by 50%.

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For Dow this week, the first nearest support level is located at 34.050. In case if it breaks below this level, it will head towards the next support level which is located at near 33,750 then 34,500. On the upside, 34,700 will act as an immediate and strong hurdle while 35,000 will be a critical resistance zone because above this, bulls are likely to dominate.

Read more - https://gulfbrokers.com/en/weekly-analysis-gold-usd-eurusd-and-dow-jones-8
 
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Crude oil prices expected to be extra volatile on Monday due to OPEC and allies including Russia is scheduled to meet later in the day. The oil investors and traders across the globe waiting for the OPEC+ meeting decision to get a clear picture of the oil price long term direction.

In September, OPEC+ agreed to increase its output targets by 400,000 barrels per day in October and during this month the oil prices went up 9%, the biggest monthly gain since June.

EQUITIES

Global stocks managed to start October and the fourth quarter with some nice gains. While the US stock futures are losing some ground in the premarket trading session on Monday as investors remain concerned that the Fed will soon announce the reduction of its asset purchase program.

OIL

Crude oil prices slightly reversed from the earlier gains and trading session low, with US oil futures falling to $75.50 a barrel and Brent crude to $79.45 a barrel.

CURRENCIES


In the currency market, the Euro slightly rebounded against the US dollar while the Canadian dollar holding the previous week gains are supported by higher oil prices.

GOLD

The safe-haven metal trading was slightly lower on Monday as investors awaited key economic readings out of the United States this week. At the time of writing, the gold price trades below $1760.

Economic Outlook

Moving ahead today, the important events to watch:

Canada – Building permits: GMT – 12.30

US – Factory orders: GMT – 14.00

Coronavirus update:

Worldwide, more than 232 million people have been confirmed infected and more than 4.7 million have died. The United States has confirmed over 43 million cases and has had more than 693,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook

EURUSD:
The currency pair holding the early session gains on Monday. For today, the currency pair should find near term support near 1.1560 whereas resistance levels could be 1.1640.

eurusd


The important levels to watch for today: Support- 1.1580 and 1.1560 Resistance- 1.1620 and 1.1650.

GOLD: The precious metal trades above $1750. On the other side, if the metal break and close above $1766, the next level to watch $1770/72. On the flip side, the immediate support at $1747 followed by $1735.

gold neww


The important levels to watch for today: Support- 1750 and 1744 Resistance- 1765 and 1772.

Quote of the day- “I think investment psychology is by far the more important element, followed by risk control, with the least important consideration being the question of where you buy and sell.” – Tom Basso.

Read more- https://gulfbrokers.com/en/daily-market-report-380
 
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The food and beverage company Pepsi (NASDAQ: PEP) is set to announce its third-quarter financial results on Tuesday, October 05. The company is expected to post quarterly earnings of $1.73 per share and revenues are expected to be $19.3 billion.

Pepsi has shown annual earnings growth of 5.28% over the last five years. While the investors remain concerned about how rising COVID-19 cases impacted third-quarter earnings.

Technically the overall momentum remains bearish from the last 4 weeks since it was rejected and wicked from the upper descending trendline. However, the Pepsi shares have gained more than 6% this year.

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Pepsi stock closed slightly lower on Monday. In the short term, if the bearish momentum continues the next downside levels to watch $148 and then $140. On the flip side, the stock needs to find strong buyers near the downside descending trendline and take out the $160 resistance, thus invalidating the trendline pattern. The move above the $160 will drive the stock up to the next upside level of $170/75.

Read more- https://gulfbrokers.com/en/pepsi-stock-bearish-sentiment-remains-ahead-of-q3-earnings
 
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