Markets rebounded with the mighty Nasdaq leading the charge and reaching new all-time highs on Tuesday as the Fed chair Powell reassured investors the central bank is in no hurry to hike rates.
“Powell's comments helped the yield on benchmark 10-year U.S. Treasuries lower and put the brakes on a rising U.S. dollar. The 10-year Treasury yield fell to 1.4666% on Tuesday, creeping only a little higher in Asia according to MarketWatch data. US/ The U.S. dollar lost a little ground overnight, but it remains near multi-month highs after the Fed's change in tone cleared out a heap of short positions.” - Tom Westbrook
Cryptocurrencies were also a hot topic on Tuesday which saw Bitcoin at its lowest point since January 2021. The largest cryptocurrency soon found buyers at the 30 000 mark which drove prices higher and settled above the 34 000-price point by the close of business.
Here is what’s expected this week:
The Wall Street 30 Technical Analysis
The Wall Street 30 (WS30) has delivered much excitement over the last couple of weeks and has rebounded nicely from last week’s short-term sell-off. The price action found support at the 33016-price level on Monday and has been pushing higher. We might see some profit taking which could drive prices lower to 33765 before we see another rally.
- The price action is stalling and might move lower to the 33765-support level before moving higher to our possible target price at 34994.
- The 50-day SMA (blue line) is at the current price level and could act as resistance now which could support the move lower.
- The Relative Strength Index (RSI) is above the 50 mark.
Chart Source: Wall Street 4H Timeframe - GT247 MT5 Trading Platform
Trading term of the day
In finance and economics, a rebound refers to recovery from a prior period of negative activity or losses—such as a company posting strong results after a year of losses or introducing a successful product line after struggling with false starts. In the context of stocks or other securities, a rebound means that the price has risen from a lower level. For the general economy, a rebound means that economic activity has increased from lower levels, such as the bounce back following a recession. – Investopedia
*Take note: The outlook and levels might change as this outlook is released during the current days (Wednesday the 23rd of June 2021) U.S Market open.
Sources – MetaTrader5, Reuters, Investopedia.
Barry Dumas | Market Analyst at GT247.com
Barry has 12 years of experience in the financial markets. He enjoys educating clients on trading / investing and providing punchy technical analysis on securities. He currently holds a Wealth Management qualification and is studying towards becoming a Chartered Market Technician® (CMT) designation holder.
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