The Wall Street stock exchanges are painted red following the declines recorded this week following the publication of the disappointing inflation data in the US. Where do we go from here?
Index analysis
Tel Aviv 35 index – technical forecast – Tel Aviv 35 index closed the trading week with a decrease of 1.85% and closed at a level of 1,950.56 points. After a positive opening of the trading week that also continued on Monday, the index turned sharply downwards on Tuesday after disappointment with the US inflation data which rose by 0.1% in August contrary to forecasts for a similar decrease. The declines continued until Thursday’s close when the index closed the price gap which opened at the beginning of August. At this stage, the discount remains in further realization when the target remains in the area of 1,923 points, a support area as well as a 50% correction to the uptrend that started from the low in mid-June.
Shekel-Dollar – The dollar concluded a particularly volatile trading week with an increase of about 0.6% and traded around 3.43 shekels to the dollar. Volatility began after the publication of the inflation data in the US, but despite the weekly increase, the dollar stalled once again in the 3.44-3.45 area. The inability to continue the movement and a breach of the 3.45 area indicates the possibility of an upward correction in the local stock market, but in light of the falling price structure, the dollar will likely try Break once more the resistance around 3.45. If it breaks, the target around 3.47. From below, the 3.4 area is support for the coming week.
The S&P500 index – after a positive opening of the trading week following the increases recorded last week, on Tuesday the index fell sharply (-4.3%) after the publication of disappointing inflation data. Despite this, the index is based on the last two trading days above the 3,900 point area, the low recorded at the beginning of the month after which the index went into an upward correction wave. If this area holds, we may get another upward correction back to the 4,100 point area. On the other hand, a break of the support zone at 3,900 and a failure to break back above it will trigger another downward wave to the 3,750 zone as a near target.
In the short-medium term, as long as the index trades below the 4,200 points area, the trend will remain negative and this means that any upward correction in the index is defined as a correction to the last falling wave and not beyond.
The German DAX index – the DAX index, similar to the US indices, recorded a volatile trading week. On Tuesday, it reversed sharply and erased the increase recorded at the beginning of the week. The negative momentum continued until Thursday, indicating the weakness of the index, and the structure of the price graph from the last few days indicates a possibility It is reasonable to re-check the area of 12,600-12,700 points, the last low. From below, the area of 12,400 is substantial support and from above, the area of 13,390-13,400 has become resistance.
Ethereum (ETH) – The Ethereum crypto network has completed the publicized and delayed transition (merger) to the “proof of stake” system for the purpose of approving transactions in the blockchain network. The merger aims to drastically reduce the energy consumption of the network, through an agreement on the holding of smart contracts between the holders of the currency in the network. While the move should support the currency in the long term, the short-term price movement shows that the move has not impressed traders or is already priced in anticipation of its completion. In addition, most of the cryptocurrencies suffered price drops this week. The currency once again encountered the resistance level in the $1,720 area and later in the week it traded in lower rates, below the 50 moving average. The nearest support level is in the $358 area.
stock analysis
Bezeq (230011) – The company’s shares are traded in the Tel Aviv index 35. One of the few that is trading in an upward trend around record levels. The stock broke through the 601-602 zone at the beginning of the week, the last peak, but the structure of the emerging price graph shows that the 611 point zone is a substantial resistance zone in the long term The short that may bring realization back to the area of 565-560 points. Only a breakthrough of the resistance area will be a trigger for the continuation of the rising movement towards the target that we set in the last reviews in the area of 640 points.
High School Towers (1131523) – The company’s shares are traded on the Tel Aviv Index 90. Although it recorded a negative trading week, the area of 1,055-1,065 points continued to support the price from above. Technically, this area is an important support for the short term and as long as it does not break down, the assumption is Testing the yearly high area around 1,168 points there will be retested.
Doral Energy (1166768) – The company’s shares are traded on the TA 90 index. Last week the stock jumped sharply and signed the horizontal resistance zone around 1,340 points. On Sunday, the stock opened trading above the resistance zone and was established above it throughout the trading week. This establishment increases the possibility of continued The upward correction towards the target around 1,500 points, the April high.From below, the 1,300-1,340 area will serve as support.
Arad (731018) – The company’s shares are traded in the Tel Aviv Index 90. The stock has been establishing itself for several weeks below the horizontal resistance area/annual high in the region of 47,800 points. Earlier, the stock recorded an impressive surge from the last low in June around the area of 34,000 points. At this stage, the establishment is increasing the possibility of breaking the resistance and continuing the rising trend and if it breaks out and closes above the area of 47,800-48,000 points, the future target has been marked in the area of 53,000 points. From below, the area of 45,000 points serves as close support.
El Al (1087824) – The company’s shares are traded on other stock indices and the converters. From the beginning of 2021, the stock created a support/resistance zone ranging between 402 points and 413 points. Most of the time it traded below this zone with a very sharp drop at the end of 2021. The first breakout occurred in April this year and after that the stock continued to trade below the resistance zone. On the last trading day she broke it by a large gap and high trading volume. For follow-up, the mother returns to check the support level and continues the upward movement or breaks back the support and goes below the resistance zone.
The Bata Stock Exchange (1159029) – The company’s shares are traded on the Tel Aviv Index 90. In May 2021, the stock reached a record price and corrected sharply to a resistance/support area between 1784 points and 1752 points. In recent months the stock has been trading below this zone when on the last trading day it broke through the nearest resistance in a high turnover. To monitor whether the stock manages to break through the resistance zone and continues the upward trend.
Crox (CROX) – the company’s shares are traded on the NYSE. American company from the consumer sector for the production of shoes and fashion accessories. The company that traded at a record price of $183.95 at the end of 2021 and retraced all the rise to a resistance zone of $83.70-84.60 last March. In the last two months the stock has been trading below the resistance zone. To monitor whether the stock continues to move up and breaks through the resistance.
The complete graphs and technical analyzes can be found on the sponsor website www.sponser.co.il in the Weekly Review section, under the categories “Index Analysis” and “Stock Analysis”.
This review is intended to help people get a personal view of the sponsor team about the market and about its possible directions, but analysts cannot be sure of the realization of the scenarios raised as nothing is certain in the capital market at all. Regarding all the shares mentioned above, the above does not contain a recommendation or advice to buy or sell or perform any other action in the shares mentioned, the writer of the lines may own some of the shares in question. Anyone who takes an action, does so based on his judgment only.