Stocks traded mixed on Tuesday, with gains in the technology, consumer goods, and healthcare sectors offsetting losses in industrials and energy sectors. A report revealing a drop in job openings in October continued to fuel hopes for interest rate cuts in 2024, but at the same time raised concerns about the economic outlook for a soft landing. Below, we take a closer look at three charts related to notable movements on Tuesday and discuss key levels to watch.
Nio Inc.
Shares of Chinese electric vehicle manufacturer Nio (NIO) rose 1.5% on Tuesday after reporting a smaller loss than the market had expected. While the Shanghai-based company posted a third-quarter loss that was still higher than the same quarter last year, it narrowed by 24.8% sequentially. On Wednesday, Reuters reported that the electric vehicle maker plans to spin off its battery manufacturing unit, and shares increased in pre-market trading.
The stock price of the Chinese automaker has traded sideways near its lows for most of 2023, except for a short-lived spike in the summer. Recently, the price fell toward its annual low, but it seems to be finding support from a horizontal line that nearly connects the early June lows and the November troughs. If the stock establishes a bottom at current levels, it will be important to monitor a key resistance area at the $9.15 level.
Starbucks
Shares of coffee chain Starbucks (SBUX) fell 2.1% on Tuesday, marking the longest losing streak for the stock since its IPO in 1992. In recent days, investor concerns about slowing sales escalated after analyst John Ivankoe from J.P. Morgan issued a research note showing that third-party sales data had weakened significantly over the past month. The analyst also pointed to slowing sales in China as a contributing factor to the weak stock price, and Starbucks CEO Laxman Narasimhan stated on Tuesday that the recovery in China is slower than the company had anticipated.
The price of Starbucks stock has faced strong selling pressure at the upper trendline of the downward channel and is now trading below both the 50-day and 200-day moving averages. Although trading volume in 2023 remains around average, it has increased on the recent stock movement, indicating conviction from sellers. Investors should monitor how the price reacts to the upper and lower boundaries of the downward channel.
WTI Oil
West Texas Intermediate (WTI) oil, one of the key benchmarks for pricing crude oil, fell 1% on Tuesday, under pressure from doubts about production cuts and declining demand. Although the Organization of the Petroleum Exporting Countries (OPEC) and other multiple countries agreed last week to voluntarily reduce supplies by about 2.2 million barrels per day, recent statements from the Kremlin that the cuts will take time to implement have led markets to question the extent of their execution. On the demand side, concerns continue about a slowdown in the Chinese economy after Moody’s revised the economic growth forecast for the world’s largest oil importer to negative.
The price of WTI oil recorded its fifth consecutive lower close on Tuesday, with the 200-day moving average establishing a strong resistance line. Investors should watch how the price responds to movements within the support area located between $67 and $71.50. This area connects several prominent lows over the past 12 months, which may provide a price floor for the commodity.
Translates to
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Please read the disclaimer regarding warranties and legal liability for more information.
As of the date of writing this article, the author does not own any of the aforementioned securities.
Source: https://www.investopedia.com/3-charts-for-investors-to-watch-wednesday-dec-6-8411281
Leave a Reply