U.S. Markets Continue to Set Records
US markets have closed in the black the fourth session in a row, and there were only two days out of the last 13 which closed in the red with a little deviation. S&P has grown up by 70 points after it broke down consolidation and restored 8/21 EMA which were being used by active traders. Index gave up a huge share of growth yesterday’s afternoon, and middle term 8/21 EMA were curled down.
So now we may speak about the weakness of the trend that may cause a consolidation or a roll back. It really would be nice for active traders to see some roll back regardless the direction they trade in. Last time it has jumped of 100 EMA (the green line) where now my first target is ($194,70) and I’ll be watching for a new potential opportunity to buy. The new top is $196.00.
Asian markets have closed indefinably. There were some good inflation news (CPI was 2.5% higher than expected 2.4%) that’s why Shanghai grew up for 1%. Japanese Nikkei has been digesting the growth -0.85%.
European exchanges opened up in the red.
Intel has formed a strong $26 support in last two months (time-tested rate may be considered as a reliable one). It has broken through the trend line and the $27.24 top with some confident green candles and then it sped up to current levels. We may speak about the strength of sellers, because it broke the top of the previous day $28.21 but buyers did not manage to hold the growth and the candle closed near to the bottom. My plan is to trade with a Put option for a yesterday’s $27.82 bottom breakthrough and potential fall to 8 EMA $27.56 and $27.00 where 21 EMA is after that. When such a signal appears you may expect one and a half day continuation of movement and then look if buyers manage to restore their strength.
Amazone.com an international Internet retailer has found a top at the end of 2013 — beginning of 2014 in the $407 area and after some disappointing reports it entered a downtrend range. It didn’t manage to close higher than the previous $330.88 top yesterday. Coincidentally there also were 200 EMA $330.22 which was confidently broken through by the Amazon at the beginning of April this year for the first time since the April 2012. I’ll trade the breakaway of the trend line which was valid since the beginning of the year. Resistance rate is $333.00, bottom breakthrough $325.65 may lead the price to the next support rate $320 where 8/50 EMA is.
One more tech giant IBM is also under the sellers’ influence. After the confidant $190 resistance rate breakthrough and a good continuation to $199 this trend was broken with an IBM’s Income Statement that was lower than expected. The price is under the 200 EMA $188 as an Amazon’s one, that has been surpassed by IBM’s for the last tow days. It closed near to the bottom yesterday. And if it breaks the $186 bottom today, there might be a continuation. The closest support is $182.33 — 29 May’s bottom. There is a great $172 support where the triple bottom may be seen.
Gold keeps consolidating in the narrow range $1250-$1257 and the breakthrough of this range may attract the traders’ attention.