Strong Tuesday session recession fears subside

8 May 2024

After a strong Tuesday session fueled by positive earnings reports and receding recession fears, global markets are experiencing a lull on Wednesday. Investors appear to be taking a cautious approach, waiting for key economic data releases later this week.

Headlines:

- USD/JPY back above 155

- EUR/USD beneath the 1.0750 level because of a firmer dollar and mixed EU data.

 -Bitcoin climbing above 63,000

- Biden stopped license that let Intel and Qualcomm supply chips to HUAWEI

- Ukrainians hit a fuel depot in the Russian-controlled city of Luhansk.

- Reddit: Shares of Reddit (REDDIT) soared 14% after the company released its first-ever earnings report as a public company, exceeding revenue expectations.

- Gold Bars in Korean Vending Machines: In a surprising trend, gold bars are selling like hot cakes in South Korea's convenience stores and vending machines. This might be driven by rising inflation and safe-haven buying behavior.

 

DAX Technical Analysis

DAX back on track to reaching previous all-time high.

The upwards trend that started in October 2023 reached the last all time high on the 2nd of May. Subsequently a correction occurred that reached the low of the trend on the 19th of April 2024.

Afterwards, signs of a recovery were initiated, where higher lows were printed on the 25th April and 2nd May, and then taking into account the 50EMA, proceeded to initiate an extended upwards trend with higher lows and higher highs.

The buy signals were amplified by the additional buy signals in the 20EMA, 50EMA and 200EMA as well as the crossing of the stochastic RSI. Yesterday the DAX closed with a plus on the 18,438 points mark and closed over the overbought line of the top Bollinger band. Today DAX continues its upwards momentum as tensions ease.

 

Earnings expecting us today:

Toyota

Uber

Arm

Airbnb

Shopify

BMW

Ambev

Henkel AG

 

Earnings spotlight: UBER

Wall Street anticipates Uber to report EPS of $0.21, a massive 362% gain year on year, with sales of $10.08 billion, up 14% from the same quarter last year.

This follows Uber's announcement of its first year operating profit in 2023. The predicted profits reflect robust demand for ride-sharing and deliveries, as well as expansion in its fledgling advertising sector.

 

UBER technical analysis

UBER has started its uptrend since December 2022, when in March 2024 the last all time high was reached. For the next 2 months the level then tried to break through the level around 82, 3 times but was stopped from further upside momentum by the strong support level around that level.

To the downside, Uber then slightly retreated towards the 66-resistance level off which it bounced. Had it broken through, the next resistance level where the drop could slow would be the 63 level.

Buying pressure commenced however since the 66 level which is also shown by the steadily increasing RSI indicator. It is expected for UBER to move due to the earnings, and a increase in price towards the all time high is not out of the question as this represents an average move of around 10%. Next support is around the 68 level.

Trade smart and see you tomorrow,

Kind regards,