Stock markets on the rise once again

The S&P 500 and the Nasdaq moved to fresh record highs on Monday, while the Dow Jones lost ground and did not impress. The technology sector gained with big tech stocks closing the day positive. Stocks that made gains on Monday where Apple Inc. #AAPL that surged 3.04% to a new all-time high, while Microsoft Corp. #MSFT, Amazon.com #AMZN, Facebook #FB and Alphabet Inc. #GOOG were also among the winners, helping the tech-heavy Nasdaq outperform the S&P 500 and the Dow. An optimistic yet speculative outlook on the iPhone 13 that will be released in few weeks was provided by a recognised Apple analyst and may have been the main driver behind Apple’s stock performance on Monday. Ming-Chi Kuo says that the “iPhone 13” will have the ability to use satellite communications, thanks to a customized baseband chip. This function may allow user to send messages or make calls without the use of a connection. This could be the first mainstream model support such capabilities enabling Apple to keep its most saleable product in line with customer demand and quality expectations.
With the latest price action Apple’s shares have broken above the sideways range they were moving within, between our currently noted (S1) 140.30 support and our (S3) 143.15 support. This in our opinion implies the stock could be heading to higher grounds and thus we tend to keep a bullish bias for Apple. With its latest surge the price action has tested the (R1) 153.65 resistance but was unable to clearly dominate it. Higher we tend to note the (R2) 155.75 level as a possible target if the bullish action is to continue. Our final resistance is the (R3) 158.10 which is found at the top of the chart. However, in case of a turn to the downside we could see the (S2) 146.70 level coming into play just like it did on the 27th of August. The RSI indicator below our chart indicates a swift surge to the 70 level and some stabilization at that point.

Natural Gas prices slump after reaching multiyear high levels

Natural Gas surged to a new multiyear high level in the past days reaching prices last seen in 2018. On Monday Natural Gas opened with a positive gap but later corrected lower, finishing the day in red territory. The most probable happening driving the energy market at the moment is Hurricane Ida. The hurricane initially broke out nearby the Gulf of Mexico as a fierce Category 4 storm, forcing some Oil production sites into a precautionary shutdown. Offshore oil companies in the Gulf of Mexico, produce approximately 17% of U.S. oil production and 5% of natural-gas output. On Sunday companies were forced to close down flows from their production platforms evacuating more than half of them, according to a report from the Bureau of Safety and Environmental Enforcement. Also according to the Wall Street Journal the closures may have led to a loss of 1.74 million barrels a day of oil production and 2.1 billion cubic feet a day of natural-gas output. Moreover in the past weeks Natural Gas supply may have been interrupted due to high temperatures possibly adding support to prices. In some areas in the US demand for Natural Gas jumped as the weather remains hotter than normal forcing more people to use gas for air-conditioning. As we move closer to the winter season higher demand for Nat Gas by large economies like China, Turkey, Japan could be pushing prices higher. Yet the higher prices may also put breaks on demand in the short term as Natural Gas becomes rather expensive.
Technically, Nat Gas opened with a positive gap testing our (R1) 4.470 resistance level but then corrected in the following sessions moving towards the (S1) 4.200 support. In our opinion this range between the (R1) and the (S1) can be used as a barometer for further price direction. A possible move downwards can send the price below the (S1) opening the road for the (S2) 4.000 level to be tested. Lower than that we see the (S3) 3.750 line as a possible target for a bearish trend. In case the upward trend persists we could see Nat Gas crossing into new multiyear high prices such as the (R2) 4.650 line or even higher to the (R3) 4.870 level. Below our chart the RSI indicator has returned below the 80 level and stabilized possibly displaying that the take profits had taken place abruptly. Nat Gas in our view continues to be in an upward momentum since April 2021.

Other economic highlights today and the following Asian session:

Today, we get France’s GDP for Q2 and Inflation data for August, the German Employment report for August, and Eurozone’s Preliminary Inflation data for August. Later in the US session we get Canada’s GDP rates for Q2 and June and the US Consumer Confidence for August. Late in the US session we get the API Weekly Crude Oil stocks figure.
During tomorrow’s Asian session, Japan’s Jibun Final Mfg PMI for August and a speech by BoJ Deputy Governor Wakatabe. Also in the same session we get the Australian Real GDP rates for Q2 and the Chinese Caixin Mfg PMI for August.

#AAPL H4 Chart

Support: 149.30 (S1), 146.70 (S2), 143.15 (S3)
Resistance: 153.65 (R1), 155.75 (R2), 158.10 (R3)

Natural Gas H4 Chart

Support: 4.200 (S1), 4.000 (S2), 3.750 (S3)
Resistance: 4.470 (R1), 4.650 (R2), 4.870 (R3)

If you have any general queries or comments relating to this article please send an email directly to our Research team at research_team@ironfx.com

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