China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.
4 stocks to trade on July 28
2020-07-27 • Updated
Tuesday will be full of earnings releases. Here’s stocks, that worth your attention.
Analysts expect that Visa will beat all estimates. Visa’s earnings report will be published at midnight from July 28 to July 29 (MT time). If the data is better than analysts expected, Visa will go up, otherwise – go down. According to Zacks, earnings will turn out $1.02 per share and a year-over-year change – the 25.6% contraction. Why should Visa go up? It may gain amid the coronavirus pandemic as people try to pay with credit cards more, avoiding cash as it may spread the disease.
On the daily chart we may notice that Visa has been trading in a horizontal corridor for almost two months already. The earnings report will be the catalyst, which will help to escape it. If it breaks through the top of this range at $201, the price will surge to the next resistance at $208.5. Support levels are at $189 and $183.5.
Ebay’s earnings report will be published at midnight from July 28 to July 29 (MT time). Analysts from Zacks raised their expectations for Q2 earnings to $1.05 per share. This reveals the growth of 54.4% since the last year. Also, Zacks set a rank of №1 for eBay, which indicates “strong buy”. For comparison, Amazon has a Zack’s rank of №3 (“hold”) now. Of course, the e-commerce giant gained a lot amid the virus due to the increased demand for online shopping and home deliveries. Ebay’s CEO has really optimistic prospects: "we expect it to deliver $2 billion in revenue and $500 million of operating income in 2022". Also, the company is going to launch its own payment platform, which will be an additional tailwind.
Let’s look at the chart. The price fell down, that’s why traders have a great opportunity now to buy the dip. If it breaks through the all-time high at 60.25, it will surge to new record highs. Support levels are at the 50-day moving average at 50.50 and at the low of June 12 at 47.50.
The company will release its earnings report on July 28 at 15:30 MT time. The fast-food corporation suffered losses because of strict stay-at-home regimes and quarantine measures. However, McDonald’s managed to mitigate the damage via deliveries and take-away service. Analysts from Zacks expect that earnings will come out $0.76 per share. It would indicate a year-over-year decline of 62.93%. Zacks gave the company the №3 rank - “hold”.
Let’s look at the chart. The price has just crossed the 78.6% Fibonacci level at $198.50. Therefore, it may surge higher to the next resistance at $203. Support levels are at the 200-moving average at $192 and $180.
It’s one of the best biotech companies these days on the market and, also, one of frontrunners in the vaccine rally. Most analysts advise to have it in the portfolio for diversification. It can give you regular income, but it won’t double your account (it will do so, only if Pfizer is the first to create the vaccine). However, there are other tailwinds for the stock even without the vaccine. The company has reported large sales from pneumococcal disease vaccine Prevnar 13 ($1.45 billion revenue in the Q1), anti-blood-clot drug Eliquis ($1.3 billion), and breast cancer drug Ibrance ($1.25 billion). Also, the company has been increasing its dividends for 11 years. Let’s look at the chart.
It has been climbing up for the whole month already. If it breaks through the resistance at the $39.20 level, which it has touched several times already, it may surge even higher to the high of January 24 at $40.90. Support levels are at the 200- and 50-day moving averages at 36.35 and 35.35, relatively. Follow the earnings report on July 28 at 17:00 MT time. It will add fresh volatility!
To start trading stocks:
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.