Daily Market Report

Microsoft Stock Falls over 3%

July 14, 2020

U.S. Stock Market

Pivot : 3,181 Last : 3,155

Review:

U.S. indices had a mixed Monday, with gains in the Healthcare, Utilities and Basic Materials sectors and losses for many Technology, Consumer Services and Telecom stocks. The Dow Jones Industrial Average gained 0.04%, while the S&P 500 declined 0.94%, and the NASDAQ Composite fell 2.13%.

Technical comment:

The S&P 500 RSI is bearish and calls for further downside.

Preference scenario:

Short positions below 3,181 with targets at 3,115 and 3,085 in extension.

Alternative scenario:

Above 3,181, look for further upside with 3,205 and 3,234 as targets.

Resistance 3,181 3,205 3,234
Support 3,115 3,085 3,050

Microsoft (MSFT)

Pivot : 211.30 Last : 207.07

Review:

One of the worst performers of yesterday’s session was Microsoft, which fell 3.09%, or 6.60 points, to trade at 207.07 by the close.

Technical comment:

The RSI is below 30 which could mean either that prices are in a lasting downtrend or simply oversold and therefore likely to retrace.

Preference scenario:

The downside prevails as long as 211.30 is the resistance.

Alternative scenario:

Above 211.30, look for 213.50 and 214.80.

Resistance 211.30 213.50 214.80
Support 202.70 201.40 200.20

Gold

Pivot : 1,805.75 Last : 1,802.96

Review:

Gold prices stayed above $1,800 per ounce for a third straight session and should continue to rise as the COVID-19 cases increase worldwide.

Technical comment:

The RSI advocates for further decline.

Preference scenario:

Short positions below 1,805.75 with targets at 1,801.50 and 1,797.25 in extension.

Alternative scenario:

Above 1,805.75, look for further upside with 1,809.25 and 1,813.50 as targets.

Resistance 1,805.75 1,809.25 1,813.50
Support 1,801.50 1,797.25 1,793.25

Oil

Pivot : 40.10 Last : 39.71

Review:

Oil prices fell more than 1% but ended the day above the $40-per-barrel mark.

Technical comment:

The RSI shows downside momentum.

Preference scenario:

Short positions below 40.10 with targets at 39.40 and 39.05 in extension.

Alternative scenario:

Above 40.10, look for further upside with 40.40 and 40.76 as targets.

Resistance 40.10 40.40 40.76
Support 39.40 39.05 38.55

EUR/USD

Pivot : 1.1340 Last : 1.1356

Review:

The euro jumped 0.69% to $1.1369 on Monday but could be in for a bumpy ride over the next few days ahead of key developments in the European Union later this week.

Technical comment:

The RSI is above its neutrality area at 50%.

Preference scenario:

Long positions above 1.1340 with targets at 1.1375 and 1.1395 in extension.

Alternative scenario:

Below 1.1340, look for further downside with 1.1320 and 1.1300 as targets.

Resistance 1.1375 1.1395 1.1410
Support 1.1340 1.1320 1.1300

GBP/USD

Pivot : 1.2595 Last : 1.2573

Review:

The GBP/USD rose 0.2% to 1.2650 before falling to 1.2573.

Technical comment:

The RSI is bearish and calls for further downside.

Preference scenario:

Short positions below 1.2595 with targets at 1.2565 and 1.2540 in extension.

Alternative scenario:

Above 1.2595, look for further upside with 1.2625 and 1.2650 as targets.

Resistance 1.2595 1.2625 1.2650
Support 1.2565 1.2540 1.2520

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