2022/07/20 (053) Technical Analysis

The Price Zone More Or Less Around 30.000 Points
Was Successfully Defended By The Bulls During The Last Week…
It Remains A Relentless Price Battle This Week – With An Uncertain Outcome!

At the US WallStreet, the spotlight is this week on corporate earnings results and/or housing data. Elsewhere, the ECB, the Bank of Japan, and/or the People’s Bank of China will hold monetary policy meetings. While UK, Canada, and/or Japan release inflation figures for June. Also not to ignore are may be all flash manufacturing and services PMI figures for the US, for Germany, for France, for UK, and/or the Euro Area.

However, Let Us Get To the Point For This Week
– From A Short-Term Perspective, In The Form Of A Technical Analysis

Basically, for us bullish observers of the Dow futures, it is important to first defend the high (31,624) and/or the low (30,495) from last Friday. When US retail sales came in better than expected. And the Consumer Sentiment Index did not manifest a new historical low of below 50 points, as in May 2020. Although 51.1 points also suggest no reason to buy stocks on US WallStreet. Nevertheless, the high (31,624) and/or the low (30,495) must be defended. Since a trading range of over 1,000 points, of 1,129 points, to remain clear in detail, is extraordinary. So that we will have to wait and see whether a technical trend reversal chart formation will form at least in the short term for the coming trading days, this week and also next week.

Wall Street Extends Rally

The Dow Jones closed Wednesday’s session on a high note while the S&P 500 and Nasdaq outperformed by adding 0.6% and 1.6%, respectively, as investors continued to keep an eye out for second-quarter reports from major companies to gauge the economy’s health. Growth stocks were among the top performers, buoyed by an optimistic outlook from Netflix, which jumped almost 8%, following better-than-feared earnings late on Tuesday and after the streaming company said it lost fewer subscribers than anticipated. On the flip side, Baker Hughes tumbled more than 8% after the company reported a quarterly loss amid Russia-related charges and soaring inflation. Biogen lost around 6% despite raising its adjusted earnings and revenue guidance for 2022. On the data front, mortgage applications in the US fell 6.3% in the week ended July 15th, a third consecutive drop and hitting the lowest in over two decades.

Dollar Bounces Off Two-Week Low

The dollar recovered from its lowest level in two weeks to consolidate above the 107 neighborhood as investors reassessed the outlook of tightening monetary policy from the Federal Reserve. The US central bank is on track to raise interest rates by another 75 basis points next week as it seeks to curb inflation, currently running at levels not seen since 1981. While soaring inflation initially led markets to price a 100 bps hike, several Fed policymakers came to calm markets by suggesting that a minor move should work.

Dollar Set to Fall for 4th Straight Session

The dollar index fell toward 106.5 on Wednesday and was on track to fall for the fourth straight session, as expectations of a supersized 100 basis point rate hike at next week’sFederal Reserve meeting eased, while other major central banks grew increasingly hawkish to curb surging inflation. The US central bank is on track to raise interest rates by another 75 basis points next week after pushing back against expectations of a bigger full percentage point increase. Meanwhile, European Central Bank officials are considering a bigger 50 basis point rate hike on Thursday to get ahead of inflation, according to a Reuters report. Reserve Bank of Australia Governor Philip Lowe also warned on Wednesday of upside risks to inflation and signaled more policy tightening ahead, while Bank of England Governor Andrew Bailey said on Tuesday that a 50 basis point rate hike will be considered at next week’s meeting.

The Most Important Higher-Level Prizes

36832 01/05/2022 (a) previous all-time high
35752 02/22/2022 (b) 1st interim high after all-time high
35413 04/21/2022 1st interim new high above 200SMA after 3rd low above
35281 03/29/2022 (c) 2nd interim high after all-time high
33928 12/01/2021 (1) last low under 200SMA before all-time high
33434 05/31/2022 false break-out after reversal before lowest price
33031 01/24/2022 (2) 1st interim low after all-time high
32167 02/24/2022 (3) 2nd interim high after all-time high
31867 06/28/2022 1st interim new high after lowest price

31853 07/20/2022 today`s close (last trading price)

31490 07/08/2022 2nd interim high after lowest price
31148 05/12/2022 1st another interim new low after (abc) (123) reversal
30585 05/20/2022 2nd another interim new low after (abc) (123) reversal
29639 06/17/2022 lowest price so far after all-time high

For All Our Love Of Technical Analysis,
Don`t Underestimate Fundamental New Numbers From The US Economy
– And/Or Much More The Reaction Of The FED, In Form Of Interest Rate Hikes

Regardless of the current technical picture, new data from the US economy must also be taken into account. Because the FED cannot avoid a hawkish monetary policy in order to suppress US inflation. And that even if you are not held responsible if we continue to argue competently. Since Sleepy Joe Biden, since he has been in charge of the White House Office, has reversed the policies of his predecessor Donald J. Trump. That the US consumers are now paying for. And also the FED, with above-average interest rate ncreases. Including the danger of conjuring up a US recession as a result.