Daily Market Review & Financial Analysis

Johnson Agrees Brexit Deal with EU

October 18, 2019

U.S. Stock Market

Pivot : 26,300 Last : 27,066

Review:

U.S. indices finished higher on Thursday, thanks to gains in the Healthcare, Consumer Services and Industrials sectors. The Dow Jones rose by 0.09%, the S&P 500 grew 0.28% and the NASDAQ added 0.40%.

Technical comment:

(Researched by Trading Central): the Dow RSI shows upside momentum.

Preference scenario:

Long positions above 26,300 with targets at 27,390 and 28,060 in extension.

Alternative scenario:

Below 26,300 look for further downside with 26,100 and 25,340 as targets.

Resistance 27,390 28,060 28,630
Support 26,300 26,100 25,340

Netflix (NFLX)

Pivot : 275.30 Last : 293.35

Review:

Q3 earnings results were mixed, significantly beating EPS estimates, but marginally missing revenue targets. After-hours markets saw an immediate 5% drop followed by a price surge 2 minutes later that sent the stock up over 10% from its closing price.

Technical comment:

(Researched by Trading Central): the RSI is above its neutrality area at 50, while the MACD is negative, though above its signal line. It must now break above zero to trigger further gains. Moreover, the stock is trading above both its 20- and 50-day Moving Averages (at 272.71 and 287.03 respectively). Finally, Netflix has crossed above its upper daily Bollinger band (292.21).

Preference scenario:

Our next up target stands at 339.90.

Alternative scenario:

Below 275.30, expect 259.20 and 249.40.

Resistance 339.90 350.40 360.90
Support 275.30 259.20 249.40

Gold

Pivot : 1,488.0 Last : 1,492.1

Review:

Investors managed to push Gold higher on Thursday, instead of completely embracing risk, with doubts remaining over whether the UK will get parliamentary ratification for its Brexit deal, and Turkey agreeing to a ceasefire in Syria.

Technical comment:

(Researched by Trading Central): even though a continuation of the current consolidation cannot be ruled out, its extent should be limited.

Preference scenario:

Long positions above 1,488 with targets at 1,497 and 1,500 in extension.

Alternative scenario:

Below 1,488, look for further downside with 1,484 and 1,481 as targets.

Crude Oil

Pivot : 53.60 Last : 53.98

Review:

Oil prices rose on Thursday as traders looked beyond a huge jump in weekly U.S. crude inventories to focus on dwindling fuel stockpiles as the maintenance season for refineries caused an unusual deficit in oil products.

Technical comment:

(Researched by Trading Central): the RSI is bullish and calls for further advance.

Preference scenario:

Long positions above 53.60 with targets at 54.30 and 54.60 in extension.

Alternative scenario:

Below 53.60, look for further downside with 53.30 and 52.95 as targets.

Resistance 54.30 54.60 54.90
Support 53.60 53.30 52.95

Euro (EUR)

Pivot : 1.1105 Last : 1.1124

Review:

The EUR/USD was up 0.5%. closing at 1.1116.

Technical comment:

(Researched by Trading Central): the break above 1.1105 is a positive signal that has opened a path to 1.1140.

Preference scenario:

Long positions above 1.1105 with targets at 1.1140 and 1.1160 in extension.

Alternative scenario:

Below 1.1105, look for further downside with 1.1085 and 1.1065 as targets.

Resistance 1.1140 1.1160 1.1180
Support 1.1105 1.1085 1.1065

British Pound (GBP)

Pivot : 1.2835 Last : 1.2867

Review:

The British pound traded near five-month highs against the dollar and the euro after British Prime Minister Boris Johnson and European Union leaders agreed a new deal for the UK to exit the bloc.

Technical comment:

(Researched by Trading Central): while further consolidation cannot be ruled out, its extent should be limited.

Preference scenario:

Long positions above 1.2835 with targets at 1.2895 and 1.2930 in extension.

Alternative scenario:

Below 1.2835, look for further downside with 1.2800 and 1.2755 as targets.

Resistance 1.2895 1.2930 1.2990
Support 1.2835 1.2800 1.2755

Disclaimer: The charts are provided by Trading Central, which is a respected third party research provider. The information provided should not be considered as trading advice. UFX provides Trading Central chart analysis to support clients in their trades, which should be independently evaluated. Past performance is not a reliable indicator of future results. UFX cannot be held liable for any information provided by Trading Central. UFX makes no representation and assumes no liability as to the accuracy or completeness of the information provided nor any loss arising from any investment based on this material, forecast or other information supplied by an employee of UFX, a third party or otherwise.