Market News
- Overnight on Wall Street, Nasdaq Composite tumbled 1.6%, confirming a correction as it was dragged down by Alphabet, Facebook and Amazon on fears these companies are the targets of U.S. government antitrust regulators. S&P 500 ended the day down 0.3% and Dow Jones ended the session virtually unchanged.
- Trade worries continued to weigh on the broader market. Chinese Vice Commerce Minister Wang Shouwen said in a white paper Sunday that Washington won’t be able to use pressure to force a trade deal on Beijing. He also refused to say whether the leaders of both countries would meet at the G-20 summit to work out an agreement later this month.
- U.S. manufacturing growth unexpectedly slowed in May, driving demand for the safety of government bonds. The benchmark 10-year U.S. note yield fell to its lowest level since September 2017.
Market Views
- Asian stocks traded cautiously on Tuesday morning amid ongoing global trade tensions. Nikkei was largely flat and Australia 200 traded 0.16% higher as investors will be watching out for the release of the Reserve Bank of Australia’s decision on interest rates.
- James Bullard, Federal Open Market Committee voting member, said Monday that an interest rate cut “may be warranted soon” due to the potential impact of global trade tensions as well as weak U.S. inflation on economic growth.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 24,855
Target price:
Protective stop:
Outlook
Price has moved lower after breaking below the support level of 25,229. A Head and Shoulder chart pattern has a price target of 23,684. Price is now on the way down to 24,088, which is the Fibonacci 50% correction point of 2019’s rally. The next target would be the H&S target at 23,684. Stochastic is weak and moving into oversold zone but MACD is bearish and its trend is
still bearish.
Trading Idea
Wait for pullback towards the neckline at 25,090 to get into a short position for a decline to 23,684 with stop above 25235.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,777
Target price:
Protective stop:
Outlook
Price moved below the key support of 26,944, which is the Fibonacci 62% correction point. This move has turned the price outlook to negative. Price is unlikely to hold at 26,641 and we think price could be on the way down to the next support at 26,026. Stochastic is into oversold extreme but still weak at the moment. MACD is also bearish.
Trading Idea
Wait for better trade idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 6979
Target price
Protective stop:
Outlook
Last night, price gapped down and continued its downward movement. Our bearish view remained unchanged. We don’t think price could hold at 6987, the Fibonacci 50% correction point of 2019’s rally. We think price could be on the way down to its critical Fibonacci 62% at 6781. Stochastic is into oversold extreme but still weak at the moment and MACD is bearish.
Trading Idea
Wait for a pullback to 7100 to get into a short position for 6825 with stop above 7180.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 20,333
Target price:
Protective stop :
Outlook
Price moved lower after breaking below 20,714, the Fibonacci 50% correction point of 2019’s rally. Price is now holding at the key Fibonacci 62% support at 20,293. With bearish 20EMA and MACD, we don’t think price could hold at this support. Price could be going down to 20,028 or even 19,109, the target price of the Head and Shoulder chart pattern.
Trading Idea
Wait for a pullback to 20,700 to get into a short position for 20,030 with stop above 21,150.
