NASDAQ Price Analysis – April 19, 2023
Daily Price Outlook
The Nasdaq 100 Index (NDX) experienced a 0.03% gain, trading at 13,091.79. As major companies prepare to announce their financial results for the first quarter, earnings season is set to kick off, and the Nasdaq has managed to preserve its bullish momentum throughout the month thus far.
The Nasdaq 100 Index now finds itself in the typical lull before the storm, as Q1 earnings reports begin in earnest this week. Furthermore, from an economic perspective, the US economy is performing quite well, exhibiting indications of decreasing inflation, consistently expanding at a solid pace, and sustaining historically strong job markets despite some recent signs of weakness.
Netflix's Q1 Earnings Surpassed Forecasts
Netflix Inc (NFLX) announced its revenue and profit for the first quarter on Tuesday, becoming the first mega-cap company to do so. The pioneer in streaming video services benefited from a crackdown on password sharing and the introduction of an ad-supported tier in Q1.
Netflix's earnings per share for the three months ending in March amounted to $2.88, slightly surpassing Wall Street's prediction of $2.86. Meanwhile, its revenue of $8.162 billion matched analyst expectations. Furthermore, NFLX's stock price increased by 0.29% to $333.70.
Tesla Earning to Move the Stock Index
Investors are closely watching Tesla's upcoming earnings report on Wednesday, as the company's financial results significantly influence its stock price.
Analysts expect Tesla to report a 24.2% year-over-year increase in first-quarter sales, amounting to $23.29 billion.
However, the average profit estimate has decreased by approximately 2.4% over the past three months. Tesla's share price (TSLA) has dropped 1.5% to around $184.31.
Furthermore, Tesla announced a reduction in pricing for its Model Y and Model 3 electric vehicles in the US, as seen on its website on Tuesday. This marks the sixth time the company has made such a move in the US this year, prompted by concerns about the impact on its profit margins.
NASDAQ Top Performing
On Tuesday, Nvidia (NVDA) stock experienced a surge, reaching its highest level in a year, following a recent uptrend prompted by HSBC's upgrade of the graphics chipmaker's rating to "buy" from "reduce." This change was driven by the company's potential in the artificial intelligence sector.
According to Refinitiv data, out of the 48 analysts covering Nvidia, only Frank Lee, Head of Technology Research at HSBC, holds a negative view of the chipmaker.
Nvidia's impressive 91% gain in 2023 makes it the top-performing stock on the NASDAQ. Additionally, the 2.5% increase in Nvidia stock contributed to the overall growth of the heavyweight technology sector.
Daily Technical Levels:
Support Resistance
1.0934 1.0997
1.0897 1.1021
1.0872 1.1059
Pivot Point: 1.0959
NASDAQ – Technical Outlook
The prominent stock market index, NASDAQ, currently exhibits a bearish inclination around the $13,040 mark. The NASDAQ index could find immediate support near the $12,500 level, which is reinforced by a double bottom pattern. A bullish engulfing candle closing above this specific level may indicate a potential bullish reversal.
On the upper side, immediate resistance exists around the $13,101.8 level, and a bullish break above this point could drive the NASDAQ price toward $13,250.
Conversely, a bearish breakout below the $12,962.6 level could potentially lead to a further decline toward $12,700 or $12,400 levels. Leading technical indicators, such as RSI and MACD, are now entering the sell zone, which bolsters the selling momentum.
Thus, it is crucial to monitor the $13,100 level, as this may trigger extended selling in NASDAQ.
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* GOLD Price Analysis – April 19, 2023
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