Indices Updates by Solid ECN

[SOLIDECN]

Stocks of Meta Platforms, which owns Facebook, the world's largest social network, continue to trade in a corrective trend and are around the 160 mark. At the end of last week, the results of almost a decade of the company's activity were finally summed up. The last thing that connected Meta Platforms Inc. with the previous name was its stock ticker FB, which has now also changed to META and is already used in trading on the Nasdaq exchange. It should be noted that the rebranding did not contribute to improving the financial situation of the company. Since the beginning of 2022, the shares have fallen by 51.4%, and there are no prerequisites for a trend change yet. Previously, the Ministry of Digital Information of the Russian Federation published statistics according to which Meta Platforms Inc. lost about 80% of its traffic on social networks Facebook and Instagram due to blocking in the country. Through dedicated VPN channels, services are now visited by only 10%-12% of the volume recorded before blocking.

As for the global state, the financial report for Q2 will be published in July, which may reflect revenue of 29.29B dollars and earnings per share of 2.63 dollars, which is even inferior to the 2.72 dollars shown in Q1.
​

The price is trading in a global downtrend and on the eve set a new low of the year at around 160. Technical indicators continue to hold a stable sell signal: the fast EMAs of the alligator indicator are below the signal line, and the histogram of the AO oscillator, being in the sales zone, forms descending bars.

Support levels: 155, 130 | Resistance levels: 175, 211​

 

[SOLIDECN]

Nasdaq 100 - Murray analysis​

The Nasdaq 100 index continues to move within the long-term downward channel. This week, the price tried to start a corrective growth, having reversed around the level of 11250 ([2/8]), but in the end all the positions won were lost.

The reversal level of 11250.0 is still the key for the "bears". Its breakdown will give the prospect of further decline to the lower limit of the Murray trading range in the area of 10000 ([0/8]). When the level of 11875 ([3/8]) and the middle line of the Bollinger Bands break out (12090), quotes will be able to continue growing within the central Murray channel to the level of 13125 ([5/8]).

Technical indicators do not give a single signal: the Bollinger Bands are directed downwards, the MACD histogram is stable in the negative zone, the Stochastic is directed upwards.

Resistance levels: 12090, 12500, 13125 | Support levels: 11250, 10625, 10000​

 

[SOLIDECN]

Nikkei 225 - technical analysis

H4
On the four-hour chart above the level of 26581.0, there is the formation of the Three Black Crows candlestick analysis pattern, which signals the continuation of the downtrend. Following the quotes, the successive Gravestone Doji patterns formed, which usually appear at the top and are a signal for a price reversal. In the current situation, it is likely that the asset will decline to the support level of 25796, overcoming which will allow the "bears" to reduce the price to the range of 24575–23596. An alternative scenario is possible in case of an impulsive movement of quotes above the resistance level of 26865.0. Then the "bulls" will be able to reverse the situation on the market and start an uptrend in the area of 28263 – 30008.

D1
On the daily chart, there is a Bear Flag price pattern, the construction of which started from the resistance at 28263; however, after reaching the support level of 25796, the "bulls" regained part of the lost positions, reaching the area of 26581.0. However, a warning signal for a price reversal is the formation of a Hanging Man candlestick analysis pattern, which indicates that buyers have lost control over the market. In this situation, most likely, the quotes will continue to decline to the level of 25796, the overcoming of which will serve as a signal for a further downtrend to the level of 23596.

Support levels: 25796, 24575, 23596 | Resistance levels: 26865, 28263, 30008​

 

[SOLIDECN]

CAC 40 - Murrey analysis
The quotes of the CAC 40 index have been falling since the beginning of this month, but they are currently consolidating around the pivot level 5937.5 ([2/8]), which was already unsuccessfully tested in March. After its breakdown, the decline will continue to the lower border of Murrey's trading range, 5625 ([0/8]), and further to the reversal zone to 5468.8 ([–1/8]). The key "bullish" level is the central mark of Murrey's trading range around 6250 ([4/8]), supported by the middle line of Bollinger bands. If it is broken, the trading instrument will be able to return to 6562.5 ([6/8]) and 6718.8 ([7/8], the upper line of Bollinger bands).

In general, the downward trend in the market continues, confirming the downward reversal of Bollinger bands and the increase in the MACD histogram in the negative zone. The exit of Stochastic from the oversold zone does not exclude an upward correction, but it is unlikely to reverse the current trend.

Resistance levels: 6250, 6562.5, 6718.8 | Support levels: 5937.5, 5781.2, 5625, 5468.8​

 

[SOLIDECN]

DAX 30, H4​

On the four-hour chart, there is a lateral movement of the asset within the boundaries of 12829–13323, and at the moment a Bearish Rectangle price pattern is being formed, the exit from which, most likely, can be carried out downwards, as well as a "bearish" Pattern Method of Three Falling, which signals about the continuation of the downtrend. Nevertheless, the growth of quotations is estimated as a probable scenario with a short-term correction to the resistance level of 13323, after which the instrument will resume its decline to the level of 12829. Breaking this level will mean that the Bearish Rectangle price pattern is entering its final stage and the downward movement will intensify into the support zone of 12533–11305. An alternative scenario can be implemented if the "bulls" fix their positions above 13323; then it will be possible to restore the price to the range of 14240–1512.

DAX 30, D1​

On the daily chart, in the area of 13323, a Bearish Engulfing pattern is observed, which indicates that buyers could not hold their positions that day, falling to the level of 12829; however, immediately after it, a Bullish Engulfing pattern formed at the same level, which signals a price reversal at the bottom, although the buyers' attempt was unsuccessful and the model did not receive confirmation of the market's "bullish" mood. The signal for this was the formation of a "bearish" Shooting Star model under the resistance level of 13323. At the moment, the likely scenario is that the asset will fall to the support level of 12533, overcoming which will allow the "bulls" to head lower to the zone of 11947–11305.

Support levels: 12533, 11947, 11305 | Resistance levels: 13323, 14240, 15120​

 

[SOLIDECN]

​

Dow Jones - US market remains negative​

The pressure on the US stock market continues: despite the positive reporting, large companies predict a future performance decline. For example, microchip manufacturer Micron Technology Inc. reported a 1.5x increase in net income for the current quarter, its revenue was 8.64B dollars, and earnings per share rose to 2.59 dollars from 2.14 dollars a quarter earlier, but the corporation does not expect the same strong results in next reporting period.

Another negative factor is the situation in the domestic bond market: according to yesterday's trading data, the yield of the leading securities began to rise again. So, at the end of last week, the rate on 10-year US Treasuries rose to 2.952% from 2.889%, while the indicator for global 20-year assets increased to 3.4332% from 3.3671% a few days earlier.

The index quotes move within a wide downward channel in the middle of the range. Technical indicators have significantly weakened the sell signal but still hold it: indicator Alligator's EMA oscillation range has narrowed almost completely, and the AO oscillator histogram is forming new downward bars in the sell zone.

Resistance levels: 31915, 33290 | Support levels: 29968, 28312​

 

[SOLIDECN]

FTSE 100 - UK stock market in correction

The UK stock market continues to decline on the background of extremely weak reports of the leading components, which do not allow risky assets to grow during the correction period. At the moment, quotes of the leading London Stock Exchange FTSE 100 index are showing local corrective dynamics, trading at around 7112. In the corporate segment, more and more companies show disappointing results. Supreme Plc. announced a decline in revenue and earnings in 2022 due to falling demand for products, after which the company's shares fell more than 12.7%.

The index quotes are trading within the global lateral channel, declining towards the support line. Technical indicators are in a quite steady sell signal state: the range of EMA fluctuations on the Alligator indicator is directed downwards and the AO oscillator histogram is trading in the sales area forming descending bars.

Support levels: 7011, 6760 | Resistance levels: 7200, 7480​

 

[SOLIDECN]

S&P 500 - waiting for US inflation statistics​

The US stock market continues to decline, and yesterday's drop in indices was one of the most dynamic in recent times. First of all, investors' concerns are related to the growth of the consumer price index in the USA, data on which will be presented tomorrow. If the indicator exceeds 9.0%, an emergency increase in the interest rate by 100 basis points from the American financial regulator is not excluded, which could bring down stock markets at the moment, especially the high-tech sector, which traditionally depends on the cost of borrowing.

The index quotes are traded in a global descending channel, being in the middle of the range. Technical indicators continue to hold a stable sell signal: fast EMAs on the alligator indicator are below the signal line, and the histogram of the AO oscillator, holding in the sales zone, forms ascending bars.

Support levels: 3781, 3500 - Resistance levels: 3900, 4151​

 

[SOLIDECN]

The shares of Meta Platforms, which owns the world's largest social network Facebook, are moving within a downtrend around 163. On the daily chart of the asset, a global Triangle pattern is forming with local extremes at 18 and 150, and a sharp narrowing of the formation range may indicate that the price is entering its last third, where a signal to exit it will develop.

On the four-hour chart of the asset, the quotes are completing the formation of another ascending wave, after which they can break through the lower border of the pattern around 155 since the probability of a downside implementation is much higher. Technical indicators confirm the possibility of a decline, reversing downwards: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms upward bars in the sell zone.​

 

[SOLIDECN]

Adobe Systems - technical analysis​

On the daily chart of the asset, the formation of a downtrend continues, which may continue after the breakdown of the global year's low at 350. On a four-hour chart, the price forms a local Flag pattern with the boundaries of 360 – 400, which increases the likelihood of a global downward movement after the breakdown of its support line.



Technical indicators reflect a possible continuation of the global decline: indicator Alligator's EMA oscillation range expands downwards, and the histogram of the AO oscillator forms downward bars in the sell zone.​

 

[SOLIDECN]

CAC 40 - French stock market continues to decline

One of the leading indexes of the European economy CAC 40 is trading neutrally around 5960.5 amid the absence of macroeconomic statistics that could affect the dynamics of the instrument, as well as ahead of the start of the active phase of the publication of corporate reports.

Alstom SA, Thales Group SA and Publicis Groupe SA will present their financial results next week. While analysts do not expect positive data from Alstom SA and Publicis Groupe SA, Thales Group SA's earnings forecasts remain optimistic: the company may show revenue of 4.05 billion euros, which exceeds 3.73 billion euros shown a quarter earlier, and earnings per share are likely to be a record 3.66 euros.

The quotes of the asset are traded as part of a global downtrend, declining in the local channel. Technical indicators are in a sell signal state: the range of EMA fluctuations on the Alligator indicator is still wide enough and the AO oscillator histogram, trading in the sales area, is forming alternating bars.

Support levels: 5830, 5500 | Resistance levels: 6120, 6570​