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To provide you with more diverse trading options, VT Markets will have a product launch. Please refer to the details:
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1. The above data is for reference only, please refer to the MT4/MT5 software for specific data.
2. The swap rate is subject to the MT4 and MT5 software.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Market confidence is rising as Wall Street turns more optimistic, fuelled by easing trade concerns, solid earnings, and cooling inflation. With the S&P 500 holding near record levels, investors appear focused on potential gains while staying alert to key economic signals.
The S&P 500 held its ground on Wednesday, consolidating just below its recent peak of 5,988.5, as investor sentiment remained upbeat amid a string of forecast upgrades from major Wall Street firms.
Barclays became the latest to raise its year-end projection for the index, citing a reduction in trade tensions and expectations of earnings stabilisation by 2026.
The bank increased its target to 6,050 from the previous 5,900, aligning with recent upgrades from Goldman Sachs, UBS, Deutsche Bank, and RBC Capital.
These adjustments reflect the impact of stronger-than-anticipated Q1 earnings and growing optimism that tariff-related pressures will ease heading into 2025.
Barclays strategists, led by Venu Krishna, maintained their 2025 earnings per share (EPS) forecast at $262 and introduced a 2026 EPS estimate of $285, with a 6,700 index target—representing a potential 12% upside from current levels.
They expect tariff-related disruptions to be absorbed by the end of FY2025, allowing a return to pre-disruption growth trends.
While some inflationary and margin risks persist, Barclays sees minimal direct tariff impact by next year.
May’s robust performance added momentum to this bullish narrative, with the S&P 500 climbing 6.2%—its strongest monthly gain since November 2023.
Markets were buoyed by a softer stance on tariffs from former President Trump, strong corporate earnings (particularly from AI-driven and cyclical sectors), and cooling inflation figures that renewed hopes for Federal Reserve rate cuts.
The S&P 500 appears to be entering a short-term consolidation phase after reaching a local high of 5,988.5.
Following a sharp rebound from the 3 June low of 5,867.75, price action has remained firm, supported by strong bullish momentum during the latter half of the session.
The short-term moving averages (5, 10, and 30) currently support a bullish bias, with the shorter EMAs positioned above the longer MA.
However, these are beginning to flatten, indicating a potential loss of upward momentum. The MACD histogram is narrowing, and the MACD lines are converging—both pointing to a possible pause in buying activity.
While the broader trend remains upward, the index is trading within a narrow range near 5,978, suggesting indecision near resistance.
A breakout above 5,988.5 could clear the way for further upside, while a dip below 5,960 may trigger short-term corrective pressure.
Despite the bullish backdrop, traders should remain cautious as the index hovers near record highs.
Markets remain sensitive to macroeconomic data, particularly wage inflation and consumer spending figures, which could inject short-term volatility.
Any upside surprises in upcoming CPI or PCE data could dampen expectations for near-term Fed rate cuts.
Nevertheless, as long as the 5,940 support level holds, the overall trend remains intact.
Barclays’ upgraded target of 6,050 is now a key level to watch for summer positioning, with technical and fundamental factors aligned in favour of continued strength—albeit with potential speed bumps along the way.
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Dear Client,
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
The Japanese stock market faced renewed pressure on Tuesday as cautious investor sentiment took hold, driven by a stronger yen and ongoing global trade uncertainties. While individual corporate headlines made waves, broader concerns about currency movements and geopolitical tensions dominated market focus.
The Nikkei 225 extended its decline for a third consecutive session on Tuesday, finishing slightly lower at 37,446.81, down 0.06%, after reversing early gains.
Despite the limited drop, investor sentiment across the Tokyo Stock Exchange remained cautious, with a broader bias towards selling—122 stocks declined, compared to 98 gainers and five unchanged.
The primary pressure on the index came from a strengthening Japanese yen, which appreciated to a one-week high of ¥142.40 against the US dollar.
A stronger yen typically dents the profitability of Japan’s export-driven firms by reducing the value of overseas earnings when converted back to yen.
Automotive stocks were particularly affected. Suzuki Motor recorded the sharpest fall within the index, dropping 4.51%, while Honda shed 0.94% and industry leader Toyota declined 0.59%.
This was despite reports in the domestic media of a potential $42 billion acquisition of Toyota Industries, which saw a modest rise of 0.77%.
These market movements highlight how traders are prioritising macroeconomic headwinds and currency developments over isolated corporate news.
Investors are also increasingly wary of escalating trade tensions, particularly between the United States and China.
According to Reuters, the Trump administration has imposed a deadline for countries to submit final proposals by Wednesday as part of ongoing trade talks. This effort aims to fast-track progress ahead of a self-imposed deadline in five weeks.
Further uncertainty was introduced by news that Donald Trump and Chinese President Xi Jinping may hold discussions later this week, following recent accusations from Trump that China breached previous trade rollback agreements.
This fragile diplomatic backdrop is unsettling markets, particularly in Japan, where economic growth is closely tied to exports.
Any renewed friction could prompt retaliatory tariffs or supply chain disruptions—risks that equity markets are keen to avoid.
Although overall market volatility appears subdued, price action in the Nikkei remains vulnerable.
Every attempt at a rebound this week has been met with selling pressure. The index continues to face resistance in the 37,800–37,850 range, while immediate support lies around 37,250.
On 3 June, the Nikkei briefly rallied from an intraday low of 37,263.25 to a high of 37,828.25, supported by short-term momentum across the 5-, 10-, and 30-period moving averages.
However, that bullish impulse has now faded, with prices slipping back below the 30-MA.
The MACD indicator confirms this shift in momentum, with a bearish crossover and movement into negative territory, suggesting a deeper pullback may be in play.
Price is currently testing key support near 37,400, and a decisive break below this level could open the door to a retest of the 37,260–37,300 zone.
For the bulls to regain control, the index would need to reclaim ground above 37,600–37,800.
However, without a reversal in yen strength or improvement in trade-related news, Japanese equities are likely to remain under pressure in the near term.
Click here to open account and start trading.
Dear Client,
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
Understanding how to read trading charts is fundamental for any trader aiming to navigate financial markets confidently. Trading charts visually represent price movements over time, allowing traders to analyze past performance and predict future trends. This guide will explain the basics of trading charts, different types, how volume influences analysis, and practical steps to interpret them effectively.
Trading charts are graphical tools that display price data of financial assets such as stocks, forex, precious metals, or indices. These charts plot price on the vertical axis against time on the horizontal axis. By visualizing price fluctuations, traders can identify patterns, trends, and key support or resistance levels essential for making informed trading decisions. Learning how to read the trading chart allows traders to decode market sentiment and price behavior, which is crucial for timing entry and exit points.
There are several types of trading charts, each offering unique insights:
Understanding how to read trading charts begins with recognizing which chart type suits your trading style and objectives.
Discover the 18 candlestick patterns you should know and learn.
Every trading chart consists of two axes:
Grasping the interaction between the price and time axes is essential in understanding market dynamics and accurately interpreting chart movements.
Volume represents the number of shares or contracts traded during a specific time frame. It’s a critical component in chart analysis because it confirms the strength behind price movements.
High volume during an uptrend suggests strong buying interest, reinforcing the trend’s validity.
Low volume in a price move may signal a weak or unsustainable trend, often preceding reversals.
Incorporating volume analysis into how to read the trading chart enhances decision-making by showing whether price moves are supported by active market participation.
Identifying trends is key to successful trading. Trends indicate the general direction of price movement and can be classified as:
When learning how to read trading charts, spotting these trends early helps traders position themselves advantageously in the market.
New to trading? Learn how to start trading for beginners.
To effectively read trading charts, follow these steps:
Candlestick charts are widely used because they display open, high, low, and close prices clearly, helping traders spot buying or selling pressure. Line charts are simpler, connecting closing prices to show general trends. Selecting the right chart type depends on your trading style and what detail you need.
Your trading timeframe influences what you see on the chart. Day traders typically use short timeframes like 1 to 15 minutes to capture quick moves, while swing traders prefer hourly or daily charts to focus on medium-term trends. Long-term investors often analyze weekly or monthly charts. Choosing the right timeframe helps match the chart’s signals with your trading strategy.
Recognizing patterns such as head and shoulders, double tops, or triangles can indicate potential market direction changes. These formations give clues about whether a trend will continue or reverse, helping traders make informed decisions.
Volume shows how many units of an asset have been traded. High volume during a price move confirms strong market interest and the likelihood of a sustained trend. Low volume, however, suggests weak momentum and possible reversals.
Support acts as a price floor where buying interest may push prices back up, while resistance is a ceiling where selling pressure might reverse an uptrend. Spotting these levels enables traders to set better entry and exit points.
Drawing lines that connect consecutive highs or lows helps visualize the trend direction. Uptrend lines connect higher lows, showing bullish momentum; downtrend lines connect lower highs, indicating bearish pressure. Trendlines also help identify when a trend might be weakening.
Technical indicators like moving averages and the relative strength index (RSI) provide additional confirmation of trends or overbought/oversold conditions. Using indicators alongside chart patterns reduces false signals and improves trading accuracy.
By systematically applying these techniques, traders can master how to read the trading chart to make informed trading decisions.
Mastering how to read trading charts is essential for making well-informed trading decisions. By selecting the right chart type, choosing an appropriate timeframe, analyzing price patterns, evaluating volume, identifying support and resistance levels, using trendlines, and combining technical indicators, traders gain a comprehensive understanding of market behavior. With consistent practice and the right tools, traders can confidently interpret charts to better time their trades and improve their overall trading performance.
VT Markets provides access to MetaTrader 4 and MetaTrader 5—trusted and reliable platforms equipped with advanced charting tools and real-time market data to help you master how to read trading charts. With a demo account, you can practice trading risk-free, sharpen your skills, and build confidence before trading live. VT Markets supports traders at all levels with educational resources and expert guidance to help you read trading charts effectively.
Start your trading journey with VT Markets and gain the confidence to interpret charts like a professional.
To read trading charts effectively, follow these key steps:
Practicing these steps regularly will help you master how to read trading charts confidently.
Volume is critical as it validates price movements. High volume confirms trends, while low volume may indicate weak or false moves.
Yes, combining line, bar, and candlestick charts can provide a comprehensive view of market conditions.
Choose a timeframe aligned with your trading style. Short-term traders use minute charts, while long-term traders prefer daily or weekly charts.
Support and resistance are price points where the market tends to reverse or stall. Identifying these helps traders make better entry and exit decisions.
Indicators like moving averages and RSI provide additional data on momentum and trend strength, confirming or warning against signals seen on the charts.
Yes, demo accounts allow you to practice chart reading and trading strategies without risking real money, which is essential for gaining confidence.
Day traders often monitor charts continuously or at very short intervals (1-5 minutes) to catch quick price movements and adjust trades accordingly.
Dear Client,
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
The first week of June brings a mix of critical economic data, central bank decisions, and political developments that are likely to shape market sentiment. With investors closely watching the European Central Bank’s next move and the upcoming US jobs report, markets are poised for potential shifts in expectations around inflation, interest rates, and global growth.
Trade opportunity: Target 1: $21,625, target 2: $21,900.
Trade opportunity: Target 1: $3,280, target 2: $3,250.
Trade opportunity: Target 1: $62.30, target 2: $63.04.
Click here to open account and start trading.
The Japanese yen is drawing increased attention from traders as shifting inflation dynamics and policy expectations begin to reshape the currency landscape. Recent developments in Tokyo’s economic data have revived discussions around the Bank of Japan’s next moves, while global uncertainty is driving investors towards safer assets.
The Japanese yen continued to gain ground on Friday, breaking decisively below the 144.00 level against the US dollar.
This move followed unexpectedly strong inflation data out of Tokyo, fuelling renewed speculation that the Bank of Japan (BoJ) could begin tightening monetary policy sooner than previously anticipated by the markets.
The Tokyo core Consumer Price Index (CPI), often viewed as an early indicator of national inflation trends, posted a higher-than-expected reading.
This surprise prompted traders to reassess their interest rate outlook, with market consensus now leaning towards a potential 25 basis point hike in July.
Overnight index swaps have begun pricing in increased odds of further gradual policy tightening by the BoJ throughout the remainder of 2025.
In comments delivered on Friday, BoJ Governor Kazuo Ueda addressed the bank’s recent downgrade of its inflation forecast. He attributed the revision to a range of external factors, including lingering trade uncertainties, a decline in cost-push inflation, and weaker global oil prices.
Despite this, Ueda reaffirmed the central bank’s commitment to its 2% inflation target, suggesting that future policy moves will be guided primarily by domestic factors such as wage growth and consumer spending.
As one of the few major central banks still transitioning away from ultra-loose monetary policy, the BoJ’s cautious approach makes the yen especially sensitive to any signs of rising inflation.
Analysts expect a gradual shift towards policy normalisation, especially if domestic demand shows signs of resilience.
The yen also benefitted from heightened demand for safe-haven assets after a US appeals court reinstated former President Trump’s reciprocal tariff initiative.
The legal reversal sparked fresh concerns over escalating trade tensions, reversing earlier risk-on sentiment and putting downward pressure on the US dollar.
Traditional safe havens, including the yen and the Swiss franc, saw renewed inflows as investor sentiment turned cautious.
This latest development adds another layer of uncertainty for global trade, particularly in Asia. With its sizeable trade surplus and deep integration into global supply chains, Japan may once again find itself under scrutiny if protectionist measures from the US begin to escalate.
On 29 May, USD/JPY briefly touched a session high of 146.284 before reversing course and entering a sustained downtrend that extended into 30 May.
Price action remains consistently below the 30-period moving average, a clear indication of bearish market sentiment.
Attempts at short-term recoveries have repeatedly met resistance at the 10- and 30-period moving average crossovers.
The MACD indicator crossed below its signal line during the initial stages of the decline and has continued to signal weakness, although the histogram is now hinting at early stabilisation.
Key support is forming near 143.441, with price consolidating just above this level.
A break below could open the door to further losses towards the 143.00 zone, while a return above 144.20 would be needed to alter the near-term bearish outlook.
Unless USD/JPY can reclaim the 144.50 area in early trading next week, a retest of the 143.00–143.40 support region is likely.
However, upcoming US inflation and employment data could significantly influence the pair’s direction.
A stronger-than-expected print may revive expectations of further tightening by the Federal Reserve, potentially limiting further yen appreciation.
At present, bullish momentum for the yen remains firmly in place, supported by both solid domestic inflation signals and rising global economic uncertainty.
Stronger-than-expected price data from Tokyo has bolstered confidence that the Bank of Japan may be preparing to gradually move away from its ultra-loose stance, reinforcing the yen’s appeal.
At the same time, growing concerns around trade tensions and broader geopolitical risk have reignited demand for traditional safe-haven currencies.
As markets turn their attention to upcoming US inflation and labour market figures, the near-term trajectory of USD/JPY will likely hinge on a delicate balance between domestic monetary policy signals and shifting global risk sentiment.
Unless there is a significant surprise from US macro indicators, the current environment appears favourable for continued yen strength—though volatility is expected to remain elevated.
Click here to open account and start trading.
Dear Client,
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.
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