Mastering Technical Analysis for Top Stocks and SPY Trading
Good Morning Traders!
Today’s economic calendar starts with various reports that could impact market sentiment. The Trade Balance data will shed light on the trade deficit or surplus and provide insights into the dollar’s strength and the overall economic health.
Economic Indicators
At 9:45 AM ET, we expect the Final S&P Global Services PMI to reveal the service sector's performance. Then, at 10:00 AM ET, the August TIPP Economic Optimism index will be released alongside the important July ISM Services Index, which includes Prices Paid, New Orders, and Employment data. These reports will help gauge business activity and inflationary trends in the service economy.
Auction Insights
Later, at 11:30 AM ET, the Treasury will conduct a 52-Week Bill Auction, followed by a 3-Year Note Auction at 1:00 PM ET. These events could influence yield curves and investors' preferences for government debt. In this relatively light data week, traders should remain vigilant for any breaking news that could spur volatility and stick to disciplined trading strategies.
Technical Analysis of SPY
SPDR S&P 500 ETF Trust (SPY)
SPY is currently trading near the pivotal level of 632.50. Bulls target a push to 633.75. If the momentum stays above this point, we can expect further increases towards 635.29. If buyers maintain 635.29 during regular trading hours, continue to watch for an upward movement towards 636.15, aiming ultimately at 636.99 as a bullish target.
If bulls lose the hold at 632.50, sellers will aim for a downward move, initially challenging 631.44. Further bearish pressure could then push SPY down to the critical support of 630.15. A decisive breach could send SPY quickly to 628.41, and if selling intensifies, the lowest target for the session might be 626.86.
Analyzing QQQ Performance
Invesco QQQ Trust Series 1 (QQQ)
Currently, QQQ is trading near the significant level of 566.50. Bulls need to establish price action above this mark, creating reliable intraday support at 568.43. Sustaining bullish sentiment may encourage further upside towards 570.91. If buying remains strong, a climb towards 574.29, and the ultimate bullish objective of 577.59 could be in sight.
Should QQQ fail to secure 566.50, bears will seize control, initially pushing downwards towards 564.75. If weakness persists, anticipate declines towards 563.61 and then possibly 561.89. A significant breach here could open the pathway to the day’s lowest bearish target at 560.88.
Key Levels for Major Tech Stocks
Apple Inc. (AAPL)
Apple is navigating around the key support of 204.00. Bulls should strive to maintain this level and push towards 205.31. If buying persists, Apple might rise to 206.63, with the high-end bullish target at 208.26.
Conversely, if buyers cannot uphold 204.00, bearish traders will likely target 203.00. Continued selling pressure may bring the stock down to 202.12 or further to 201.37, with potential drops down to a significant bear target of 200.74.
Microsoft Corp. (MSFT)
Microsoft is positioned at the highlighted level of 538.50. Bulls will need to hold above 538.20 to facilitate a move towards 540.40, which could act as intraday support. Maintaining above 540.40 could lead to a bullish advance towards 542.27 with a daily bullish target of 544.71.
If 538.50 fails as a support level, bears could quickly challenge 537.33, leading to potential selloffs targeting 535.78 and ultimately down to our lowest bearish target of 532.89.
NVIDIA Corporation (NVDA)
NVIDIA is currently trading around the important level of 181.50. Bulls must push the price upward to reclaim support at 182.54. Sustained momentum could open the door to resistance at 183.91, with top targets at 186.91.
If NVIDIA cannot maintain 181.50, expect swift downward forces targeting 179.30, potentially leading to drops down to 177.79, and further declines reaching down towards our daily bearish target of 175.49.
Alphabet Inc Class A (GOOGL)
Alphabet trades near critical support at 195.00; Bulls must establish this level as intraday support to aim higher towards 196.05, with strong activity potentially reaching 197.92.
If 195.00 fails as a support level, sellers may challenge 193.89, and aggressive selling could drive the price down towards 192.78, possibly even to our low-end bearish target of 191.05.
Meta Platforms Inc (META)
Currently, Meta is near the key level of 778.50. Bulls will attempt to secure prices above 781.21, enabling a pathway for further advances toward 783.16. The bullish momentum could further push towards 788.45.
However, if 778.50 support falters, sellers may aim for a decline to 774.59, with bearish pressure pushing it down further to 772.13 and potentially towards a lowest target of 770.13.
Tesla Inc. (TSLA)
Tesla is hovering near the vital price level of 310.50. Bulls should aim for an upward move towards 312.78, with potential resistance at 316.46. If bullish sentiment prevails, Tesla might push upward toward a target of 324.64.
If the 310.50 support level weakens, expect sellers to target prices around 308.66 and further down towards 306.82. A definitive breakdown could take prices down to 305.43.
As you navigate this trading session, remain cautious but optimistic, utilizing stop-losses and prudent position sizing to effectively manage risk. Wishing much success in your trading!
Frequently Asked Questions
What is technical analysis in trading?
Technical analysis involves evaluating price movements and trading volumes to forecast future price actions in the stock market.
How do economic indicators affect stock trading?
Economic indicators provide data about the economy's performance, influencing trader sentiment and market movements.
Why is support and resistance important in trading?
Support and resistance levels are critical price points where buying and selling pressure can change, indicating potential reversals in stock price trends.
What stocks are included in the analysis?
The analysis includes major stocks like SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.
What strategies can help with risk management while trading?
Using stop-loss orders, diversifying portfolio investments, and practicing position sizing can be effective risk management strategies.
About The Author
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