Last week saw few big moves in the markets. Many charts are displaying range-like behaviors, but there are some potential daily trading options amidst the caution.
Coronavirus cases are now at 1.4 million, with 80,040 deaths, out of 280,000-plus worldwide. The unemployment rate is now greater than 14.7% and the scale of job losses is being compared to the Great Depression in the 1930s.
The pandemic is affecting factories globally, significantly bringing down production. This is a large reason for the current administration’s push to re-open states as soon as possible.
Further government stimulus packages are now on hold. The administration is adopting a wait-and-see approach, which is also aimed at curbing the record-high federal budget deficit – now sitting at $737 billion. The markets appear to be reflecting the same cautionary tone.
Key economic calendar news events to watch this week are:
- Core CPI – Tuesday.
- Federal Reserve Chair Jerome Powell speaks – Wednesday.
- Unemployment claims – Thursday.
- Retail sales – Friday.
NASDAQ, Daily, Bullish
While the monthly and weekly timeframes show no clear trend right now, the daily chart has an uptrend with higher-highs and higher-lows.
Price recently broke above the key 9,000 level, heading back up towards the all-time high at 9,700. Should price retrace down towards the 8 and 21 period moving averages (MAs), and to re-test the 9,000 level, there may be a long opportunity as price resumes the uptrend.
A small, or small-medium candlestick forming at this 9,000 level may present an economical entry.
The RSI and MACD momentum indicators continue to make highs with price adding further credence to a posisble long opportunity.
RBOB Gasoline, Daily, Bullish
There is an uptrend on both the daily and weekly timeframes, as price started making higher highs and higher lows back in April.
The RSI and MACD momentum indicators are both trending higher supporting the bullish sentiment.
The main levels of support and resistance to be aware of are 0.7550 and 1.100. On the daily chart, should price retrace down towards the zone between the 8 & 21 MAs and the 0.7550 level, then this might produce a long entry into the uptrend.
Orange Juice, Daily, Bullish
Both weekly and daily timeframes show uptrends with higher-highs and higher-lows in price.
The daily chart may retrace back down to the MAs and/or the recent high at 115.00 and then provide an entry into the next possible extension higher.
There is minor resistance at 122.00, and so taking partial profits ahead of this level may assist against potential rejections. Major resistance resides closer to 130.00.
A small bullish candlestick forming in the zone between the 8 and 21 MAs, with the entry on the break of the high of that candlestick during the following session, could be an efficient entry.
Risk management will be key, so a stop-loss is imperative, in order to protect capital exposure against unforeseen outcomes.