US stock indices set for strong cash open on trade hopes
US500 probing key resistance region from 2815-2824 once more
Tesla to unveil Model Y SUV on 14th March
In what appears to be a rinse and repeat of last Monday’s session, US indices gapped higher on the open after further positive sounds on the US-China trade front over the weekend. The Wall Street Journal reported that the world’s two largest economies are in the final stage of completing a trade agreement, which could see an end to the present tariffs. The weekend before brought news that the US had extended the deadline to increase the current levies on China beyond 1st March and on both occasions the stock indices re-opened with gaps higher.
Last Monday’s gap failed to gain the requisite momentum to push up through the key resistance zone from 2815-2824 and this are is now of the utmost importance going forward. A break above 2824 would pave the way for an extension higher, and leave the market not that far from its all-time peak of 2946. Meaning a gain of a little over 4% from current levels would complete a remarkable and unexpected complete recovery of the declines seen in the final quarter of last year.
The US500 is back at potentially key resistance around 2824 once more. How price reacts here could be key in determining the next sustained move. Source: xStation
Shares in Tesla are called to open higher this afternoon, after the electric carmaker announced it would unveil its new Model Y SUV on March 14th. CEO Elon Musk broke the news via Twitter on Sunday, but the method of communication could draw the attention of the Securities and Exchange Commission (SEC) who only last week asked a federal court to hold Musk in contempt over what they believe was a violation of the agreement struck last year. The regulator clamped down in 2018 after Musk posted his infamous “funding secured” tweet which caused a sharp move higher in the stock and was seen by the SEC as thinly veiled market manipulation - especially after it turned out that the proposed bid never materialised. Turning attention back to the present, a series of tweets yesterday outlined that the Model Y would be 10% bigger than the Model 3, cost 10% more and have a slightly less range for the same battery.
Tesla shares are called to open higher by a little over 1% after news of the Model Y. The stock is towards the lower end of its recent range from 245 to 390. Source: xStation