Market News
- Dow rose 207 points as stocks surged for a second day on hope the Fed will cut rates. S&P 500 rose 22 points while the Nasdaq Composite advanced 48 points for a second consecutive day.
- Fed Chair Powell opened the door to rate cuts when he said the central bank will keep an eye on current developments in the economy and will do what it must to sustain the expansion. Worries over the economy increased recently amid weakening economic data and persisting trade tensions.
- Trade tensions were slightly eased as several Republican lawmakers have voiced their opposition to new tariffs on Mexican imports while some have hinted at the possibility of blocking such tariffs. Treasury Secretary Mnuchin is scheduled to meet China’s Yi Gang this weekend with hopes that Sino-U.S. negotiation could resume.
Market Views
- Asia markets traded modestly higher on Thursday following overnight gains on Wall Street. Nikkei 225 was up 49 points in early trading, but Hang Seng was down 30 points following Shanghai’s decline.
- Investors are growing confident that global central banks will slash interest rates this year to support and sustain their economies affected by the ongoing trade war to avert a global economic slowdown.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,566
Target price:
Protective stop:
Outlook
Price reached a low of 24,603 on Monday. This low is close to the Fibonacci 38% of 2019’s rally. It is just below the Fibonacci 127% of the decline from 31st May to 14th May. Price is still below the Moving Averages and MACD has not given any reversal hint as yet. We will wait for confirmation of the reversal.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,971
Target price:
Protective stop:
Outlook
Price reached a low of 26,665 on Tuesday in the form of a Hammer reversal candlestick pattern. However, for the past 2 days, there has not been any strong follow through on the Hammer pattern. MACD is still bearish and Stochastic has not moved out of oversold extreme. The correction may not be over as yet.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7225
Target price
Protective stop:
Outlook
Price made a low at 6935 on Monday and has been climbing higher. This low was close to the Fibonacci 161.8% of the decline from 3rd May to 14th May. It is also close to the Fibonacci 50% of 2019’s rally and near
to a price low support. This may be the end of the correction but MACD has not given any divergence warning as yet.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 20,843
Target price:
Protective stop :
Outlook
Price reached a low of 20,291 on Tuesday and has been climbing higher. This low was at the Fibonacci 62% point of 2019’s rally. It was also the 127% of the decline from 22,503 to 20,768. This could mark the end point of the correction and we could see a price advance back to 21,450. MACD has a bullish divergence warning while Stochastic is beginning to move out of oversold extreme.
Trading Idea
Wait for confirmation of the reversal.
