NVIDIA
- Reflecting the AI boom and Nvidia's market dominance, Nvidia is set to replace Intel in the Dow Jones Industrial Average on November 8.
- Nvidia’s shares have skyrocketed over 170% this year, while Intel has faced declining market share and manufacturing challenges.
- Dow Jones reshuffle highlights tech shift with Nvidia joining Apple and other trillion-dollar tech giants in the index.
NVDA (Daily). This stock has established higher-highs and higher-lows, signalling a bullish continuation. Our recommended re-entry buy level is 131.00, identified as a demand zone, with a plan to hold for a long-term investment.
USDJPY
- The Bank of Japan kept its benchmark rate at 0.25% but suggested potential rate hikes ahead as inflation and growth targets are on track.
- Comments from BOJ Governor Kazuo Ueda temporarily boosted the yen, though it continues to face downward pressure.
- Analysts expect a BOJ rate hike by year’s end, dependent on Japan’s November election results and the passage of Prime Minister Ishiba's proposed supplementary budget.
USDJPY (Weekly). After a two-month decline, the USDJPY pair is quickly recovering its losses. Within just a month, it has rebounded from its yearly low, reaching the 61.8% Fibonacci level at 153.70. Consider buying around 151.10 for a discounted entry.
GOLD
- Gold fell 0.2% to $2,736 per ounce as a stronger dollar (+0.4%) and rebounding Treasury yields reduced the appeal of non-yielding assets.
- Weak job growth in the US has led economists to anticipate a 25-basis-point rate cut next week, providing some support for gold.
- With the US election nearing and heightened tensions around Iran, gold continues to attract interest as a safe-haven asset.
XAUUSD (H4). Gold has pulled back from its all-time high in the final two days of October, targeting the previous higher low at 2715.00. Investor optimism suggests the potential for prices to approach $3,000 in November or December.
Fullerton Markets Research Team
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