European exchanges closed in the red, but most of growth has been already erased. CAC40 represented the worst results for a few month last week. That means that investors may consider every following growth as a great selling opportunity.
U.S. markets closed positively on Friday. Technical Sector shares represented the best result and set a new all-time high. Dow Jones and S&P hovering around their 8/21 EMA. QQQ that displays NASDAQ started this year as a lagging one in a falling range, then jumped off 200 EMA with a reversal candle, built a series of growing lows, and that speaks of buyers’ strength. Sentiments changed after breaking through resistance and good continuation to the previous high before which it has built a base and tried to set a new high. Now Index has broken the base again. Let’s see if it gets any continuation. Lots of technical shares became more active.
Apple has broken the flag with an impressive, green candle that has closed near the high and restored 8/21 EMA. This may attract active traders, as this company’s shares has fallen out of the game for a while after the great movement caused by earning report release. Penetration above the $92.00 may lead to a potential resistance zone of $92.25-.75. I wouldn’t hurry to buy up those new highs, but wait for a rollback or consolidation. As the market consolidates — we need a catalyst of S&P release from this state, and U.S. Labor Market report may be the one. If buyers want to stay in control of the price, it’s preferable to hold it above $91.35, where 8 EMA is. The high of $95.05 would be my middle-term target.
Additional leading shares keep growing as well. Microsoft set a new high of $42.29 and keeps climbing up. 8/21 and 50 EMA are still in control of the price and may be potential buying points. Facebook and Intel are also close to their highs, but I see no good entry points right now, cause the price jumped off the key moving averages and to rest for a while there might be needed some rollback or consolidation.
Bank of America
Financial Sector has lost its glow as lots of shares lost their 8/21 EMA and seem to be weaker than the market as a whole. Bank of America has built a design that speaks of uncertainty and indecision of traders. I see more chances for a downtrend, because the price is below all the key moving averages. Penetration of $15.27 may cause the fall to $15.00. I’d like to remind you that shares reached our target of $15.90 after it broken the consolidation marked with orange zones on the chart.
Citigroup looks even weaker as our averages reversing downwards. I first paid attention to this share when the price rebelled 200 EMA and closed near the low. That day’s low breakthrough might be the signal of the entry. Now the price has the support of $47.00. Breakout and closure below may fall to more impressive support area around $46.00.
On Forex market most of the currency pairs are either in consolidation or in the movement, so there are no great entry points now.