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Wall Street indices launched Friday's trading higher
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Russell 2000 recovers after reaching textbook range of downside breakout
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MicroStrategy rallies as Bitcoin rebounds, Twitter slumps on Musk tweets
US indices launched the final trading session of the week higher. Wall Street managed to snap a losing streak yesterday when major US indices finished trading mixed. An attempt to launch a recovery move can be spotted today with Russell 2000 rallying 2% and Nasdaq-100 gaining 1.5% at the start of the session.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appWall Street indices managed to halt declines yesterday during a mixed session. Recovery can be spotted today with all major US stock market indices trading higher. An interesting technical situation can be spotted on the small-cap Russell 2000 index (US2000). Taking a look at the US2000 chart at D1 interval, we can see that the index has executed a recent downside breakout from a short-term trading range in a textbook manner. However, a drop was halted after the range of the breakout at 1,720 pts was reached. A doji candlestick was painted yesterday in the area, signaling investors' indecisiveness. A rebound can be spotted today hinting that a period of a recovery may have begun. Should advance extend, a key resistance zone to watch can be found in the 1,930 pts area - the lower limit of the earlier-broken trading range.
Company News
Twitter (TWTR.US) slumped in premarket after Elon Musk tweeted that acquisition deal was put on hold pending details on the number of fake and spam accounts on the platform. Shares traded over 20% lower at one point. However, a U-turn took place later on with another Musk's tweet. Tesla CEO said that he remains committed to the acquisition. This allowed share price to significantly trim premarket losses.
Robinhood (HOOD.US) surges today after Sam Bankman-Fried unveiled a 7.6% stake in the company. Bankman-Fried is a cryptocurrency billionaire and CEO of FTX, crypto trading platform. Billionaire became the third largest shareholder in Robinhood.
MicroStrategy (MSTR.US) rallies today along with cryptocurrencies. The US software company has extensive Bitcoin holdings therefore its share price is significantly correlated with Bitcoin's price. MicroStrategy said at the beginning of May that a drop in Bitcoin price below $21,000 would trigger a margin call on its crypto investments.
Twitter (TWTR.US) slumped in premarket after Elon Musk said that acquisition deal was put on hold. Stock recovered part of losses later on when Musk said he is still committed to acquiring a social media company. Nevertheless, Twitter shares still launched a cash session more than 10% below yesterday's closing price. Two zones to watch now are $45 area (resistance) and $38.50 area (support). Source: xStation5
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