Daily Market Technical and Fundamental Analysis
At the first peak, BoJ intervention failed to turn away buyers, but it created a good base with a local double bottom pattern (DBP) after the drop from intervention. Our strategy for the DBP here was to buy with a target of 78.6% Fibo of the intervention wave.
U.S. Fed increased interest rates by another jumbo 75 bp, as the market expected. We saw an initial bullish spike in the stock market and a drop in USD reaction to a critical sentence from the Fed statement.
Gas tanks in Europe are full, ECB increased interest rates, USD weakened last week, and CPI is double-digit. What will be the next move from here? Well, it doesn’t look bullish; let’s dive in!
Let’s talk about the “Cable”. The price rose significantly after all the U-tern expectations, recent USD weakness and Rishi Sunak becoming the new PM of the UK. But what from now? Are bears taking over again?
A double bottom pattern with a bullish Morning star pattern on the Daily chart is strong by my criteria by technical signal, forming at the bottom of the recent bearish trend.
S&P 500 closed a bullish week, and it formed an excellent weekly bullish divergence. 200 weekly moving average (4-year average) was respected, and the price has formed a signal “not to sell” called “weekly inverted hammer”. After already 3-weeks of consolidation, the price showed the expected strength.
Inflation peaked. S&P 500 had a rough week. The prices collapsed by around 6% last week in a risk-off environment. US Crude Oil dropped down to 78 levels.
Tesla’s price is declining after the split and Fed’s hawkish tone. Technically the chart looks more bearish than bullish as it forms a Weekly bearish Head and Shoulders pattern. Fundamentally it is overvalued company based on our Discounted cashflow model.