Daily Chart Report ? Tuesday, May 5th, 2020
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Today’s Summary
Tuesday, May 5th, 2020
Indices: US Stocks closed higher with the Dow Jones Industrial Average advancing 133 points or 0.56%. The S&P 500 and Nasdaq gained 0.90% and 1.13%, respectively. The Russell 2000 moved higher by 0.75%.
Sectors: 10 of the 11 sectors closed higher. Health Care led, gaining 2.13%. Financials were the only sector to close lower, slipping 0.23%.
Commodities: The June Crude Oil futures contract surged 23.98% to $25.28 per barrel. Gold futures were unchanged and continue to trade around $1,714 per ounce.
Currencies: The US Dollar Index rose 0.32%.
Interest Rates: The US 10-year Treasury yield inched higher to 0.664%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
Breakout confirmed. Let’s see where it goes… pic.twitter.com/w9fS18CaQd
— Ian McMillan, CMT (@the_chart_life) May 5, 2020
Today’s Chart of the Day was shared on Twitter by Ian McMillan (@the_chart_life). It is a three-hour candlestick chart of Natural Gas Futures year-to-date. As you can see, price has spent the majority of the year carving out a base, with a brick wall of resistance around $2.00. After testing and failing at this level numerous times over the past few months, Ian points out that price has finally made a decisive breakout. Identifying support & resistance levels like this simplifies trading decisions by providing you a clear level to trade against. In this case, if price is above $2.00, the risk is to the upside. If price is below $2.00, the risk is to the downside.
Quote of the Day
“Only Price Pays!™”
– Brian Shannon (Technical Analyst)
Top Links
Natural Gas Breaks $2.00 on Upside Rally and Next Target – FX Empire
Chris Vermeulen lays out some potential upside price targets for Natural Gas Futures now that price has broken above key resistance.
Podcast with Jeff deGraff, Founder of Rennaissance Macro Research – Technical Analysis Radio
In this podcast, JC Parets sits down with respected technical analyst, Jeff deGraff to discuss his research process and make sense of the current market environment.
Current Sector Rotation For These Two Sectors is Lining Up With Their Seasonality! – StockCharts.com
Julius de Kempenaer uses sector seasonality and Relative Rotation Graphs to figure out which areas of the market are likely to outperform/underperform the S&P 500 in May.
Peloton ‘Is Growing Real Strong’: Alphatrends CMT and Founder – Yahoo Finance
In this clip from Yahoo Finance, Brian Shannon shares his technical perspective on Peloton ($PTON) and the broader market.
More is Less – The Irrelevant Investor
Here’s a good read from Michael Batnick, in which he reminds us of the dangers of using leverage.
Top 10 Tweets
You’re all caught up now. Thanks for reading!