Tesla reports, Bitcoin breaks out & UK inflation is due

Tesla Q2 earnings preview

Tesla is due to report Q2 earnings after the close, coming as the stock trades down around 30% since the start of the year.

Tesla deliveries for Q2 stand at 254,695 vehicles in Q2, well below the 282,291 forecast, a number which had already been downwardly revised several times amid supply chain issues and COVID closures in China. Delivery numbers are, however, firmly up from last year, which means that revenue has also risen, up 44% to $17.3 billion, and adjusted earnings are expected to rise 45% to $3.6 billion.

Looking ahead, Wall Street expects Tesla to deliver 378,186 in Q34 and 438,000 vehicles in Q4. The 2022 target is 1.4 million, up 52% from the previous year.

Where next for Tesla share price?

After reaching an all-time high of 1200 at the start of the year, the share price has been falling.

It reached a low of 653 in May, taking the RSI onto the brink of oversold territory. Since then the price has been attempting to recover forming, higher lows, but lower highs in a triangle formation. The price has risen above the 50 sma and the RSI into bullish territory.

A move over the falling trendline resistance at 757 is needed to test 800 the June high and expose the 100 sma at 833. On the flip side, sellers will look for a move below 700 the February low to test 678 the rising trendline support and a break below 617 to extend the bearish trend.

BTC/USD breaks out

The long-awaited bitcoin bounce finally arrived yesterday.

BTC/USD surged over 6% yesterday as it broke out of its month-long trading range. BTC/USD broke above 23k and has risen over 12% in just two days. The fear and greed index used to track sentiment in the market improved by 10 points, reflecting an improvement in sentiment towards the crypto.

The move higher coincides with strong gains in the equity markets and investors are hopeful that the price could now venture towards the 27k to 32k range. Clearly, a move lower can’t be but if BTC/USD can rise meaningfully above its 50 sma at 23,100, more upside could be on the cards.

EUR/GBP looks to inflation data

EUR/GBP jumped 0.45% yesterday despite encouraging UK jobs data and reports that the ECB is considering raising interest rates by 50 basis points at the July meeting.

A month ago, the ECB had pre-committed to a 25 basis-point hike. However, the macroeconomic picture has deteriorated since then, and inflation has risen to a new record high. Furthermore, the euro has tumbled as other central banks hike rates at a more oversized clip highlighting divergence with the ECB. 

Today the pair is falling as attention turns to UK inflation data which is expected to rise to a fresh 40-year high. Hot inflation will keep pressure on the BoE to raise rates again in August.

Support can be found at 0.8440 (200 sma) and 0.84 (last week’s low).

Resistance for the pair can be seen at 0.8535 (50 sma) and 0.8620 (May high).