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Rallies in FTSE 100, DAX 40 and Dow have further to go Outlook on FTSE 100, DAX 40 and Dow as investors pile back in to global stock markets. Source: Getty Images Written by: Axel Rudolph FSTA | Senior Financial Analyst, London Publication date: Wednesday 24 April 2024 13:48 FTSE 100 hits yet another record high A weaker pound sterling and foreign investor buying of the undervalued UK blue chip index propelled the FTSE 100 to a record high on Monday. The pound sterling bouncing back following hawkish comments by BoE chief economist Huw Pill has not put a spanner in the works with the FTSE 100 hitting yet another record high and remaining on track for its fourth straight day of gains. Minor support sits between the early-to-mid-April highs at 8,046 to 8,017. Medium-term the 161.8% Fibonacci extension of the March-to-June 2020 advance, projected higher from the October 2020 low, around the 8300 mark represents a possible upside target. Source: ProRealTime DAX 40 regains lost ground The DAX 40’s strong rally off last week’s 17,400 low has gained traction and is trying to overcome last week’s high at 18,195. If overcome on a daily chart closing basis, the 8 April high at 18,329 will be in focus, together with the 4 April high at 18,429. Minor support can be spotted around the 5 April low at 18,085 and around the psychological 18,000 level. Source: ProRealTime Dow sees strong three straight day rally Since last week the Dow Jones Industrial Average regained lost ground and has risen by around 3% with the 55-day simple moving average (SMA) at 38,783 representing the next upside target, together with the 10 April high at 39,029. Potential slips may find support around the 38,452 March low and further down, around the late February 38,336 low. Source: ProRealTime -
Gold price drifts down, while WTI crude price and natural gas price move higher Commodities recovered overnight, as natural gas prices rallied to their highest level since February, while oil prices surged off Tuesday’s low. Meanwhile, the gold price drifts downwards. Source: Getty Images Written by: Chris Beauchamp | Chief Market Analyst, London Publication date: Wednesday 24 April 2024 13:33 Gold struggles to hold its ground Gold prices found buyers yesterday as it dipped below $2300, briefly hitting a three-week low. Early trading this morning has seen a cautiously-positive start, and further gains above $2350 may suggest that a low is in place. Sellers will look for a reversal back below $2300 in order to open the door towards the 50-day simple moving average (SMA). Source: ProRealTime WTI forms a higher low? Oil prices staged an impressive bounce off the 50-day SMA on Tuesday, having spent the previous three sessions forming a short-term low above $81. A higher low looks to be in place for the time being, which then opens the way back to the peak from early April above $87. A fresh bearish view would require a reversal back to $81, and then a close below the lows of last week. Source: ProRealTime Natural Gas rallies to three-month high Natural gas has finally enjoyed a strong rally over the week so far, moving above 2000 at last and returning to the 100-day SMA for the first time since the beginning of the year. Of course, all this merely results in a substantially lower high relative to January, though the move above the February high at 2068 does help to bolster a short-term bullish view. The 2200 low from December becomes the next target. Meanwhile, sellers will be looking for a reversal back below the February high to suggest that a new leg lower has begun. Source: ProRealTime
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Tesla, the first of the Magnificent 7 to report earnings, surged after it announced plans to build more affordable electric vehicles (EV). Source: Getty Images Shares Tesla, Inc. Electric vehicle Vehicle Share price Technical analysis Written by: Axel Rudolph FSTA | Senior Financial Analyst, London Publication date: Wednesday 24 April 2024 09:55 Tesla share price surges after Q1 results Tesla, the first of the Magnificent 7 to report earnings, surged after it announced plans to build more affordable electric vehicles (EV). New affordable model plans offset earnings miss Tesla shares surged in after-hours trading as the electric vehicle maker announced plans to accelerate the launch of new affordable EV models, despite reporting first quarter (Q1) earnings that missed Wall Street estimates. For the Q1 of 2024, Tesla reported revenue of $21.3 billion, down 9% year-over-year, attributed to reduced vehicle average selling prices and a decline in deliveries. Analysts had expected revenue of $22.15 billion. Adjusted earnings per share (EPS) came in at $0.45, slightly below the consensus estimate of $0.46. Investors cheer plans for cheaper models In a statement accompanying its Q1 2024 earnings report, Tesla said it plans to launch new models, including more affordable EVs, ahead of its previously communicated start of production in the second half of 2025. "These new vehicles, including more affordable models, will utilize aspects of the next generation platform as well as aspects of our current platforms, and will be able to be produced on the same manufacturing lines as our current vehicle line-up," the company stated. Cost reduction plans trimmed Tesla acknowledged that this accelerated timeline "may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times." Gross margins hit by price cuts Gross margins at Tesla were 17.4% in Q1, down from 19.3% a year ago, reflecting the impact of the company's repeated price cuts on its vehicles to boost demand. Tesla stock price: technical analysis Despite the earnings miss, Tesla shares surged 6.3% to around $153 in after-hours trading following the release of its Q1 report and new EV model launch plans with these now showing a pre-market price of around $164. Source: Google Finance Tesla had seen its stock price fall more than 43% so far in 2024 amid concerns about pricing pressure and layoffs prior to the Q1 report. Tesla weekly candlestick chart Source: TradingView For the July 2023 to April 2024 downtrend to be questioned, a bullish reversal would need to take the Tesla share price to above its late-March high at $184.25 on a weekly chart closing basis. While this is not the case, the Tesla share price remains in a downtrend as a series of lower highs and lows can be made out on the weekly chart. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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