Market News
- Overnight on Wall Street, stocks closed off their highs of the day, extending last week’s big gains as investors cheered the agreement struck between the U.S. and Mexico to avoid tariffs being implemented.
- Dow Jones was up 78 points, rising for a sixth straight session but closed off its high. The Dow was up 226 points at its peak during the day. The S&P 500 rose 13 points and Nasdaq Composite gained 81 points.
- Investors are closely monitoring the development in the U.S.-China trade war. Trump said on Monday he was ready to impose another round of punitive tariffs on Chinese imports if he cannot make progress in trade talks with China’s President at a Group of 20 summit meeting later this month.
Market Views
- Stocks in Asia Pacific rose on Tuesday following overnight comments from Trump on his country’s trade war with China. Nikkei recovered from its earlier decline to trade up by 0.2% and Australia 200 advanced 1.2% after returning from a holiday.
- The acting director of the White House Office of Management and Budget is seeking a two-year delay of a ban prohibiting companies that do business with Chinese telecom giant Huawei from providing services to the United States government.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,125
Target price:
Protective stop:
Outlook
Price has hit 26,144, the support-turned-resistance level, which is also the Fibonacci 38% of the decline from 1st May to 14th May, with a gap up yesterday. This level has resisted the price rally since the low at 24,603. Watch out for the reaction at this resistance level. Stochastic is into the overbought region. MACD is still bearish despite the 6-day rally. This rally could be a corrective rally. We will wait for confirmation of the reversal.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,772
Target price:
Protective stop:
Outlook
Price broke above last week consolidation range with a gap up on Monday. It closed above the 20EMA as well as its previous gap resistance with a bullish candlestick. We believe price could move higher to test 28,070 or even 28,507, the Fibonacci 50% of the decline from 3rd May to 4th June. Stochastic is moving out of oversold extreme but the MACD is still bearish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7533
Target price
Protective stop:
Outlook
Price moved above 20EMA after climbing higher from a low formed at 6935. Price tested 7570 yesterday but closed lower. We think that price could move higher to test its previous high at 7638, which is also the Fibonacci 38% of the decline from 3rd May to 14th May. Stochastic is moving higher but MACD is still bearish despite a 6-day rally.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21.233
Target price:
Protective stop :
Outlook
Price has been climbing higher after reaching a low at 20,291. Price closed above the 20EMA with a gap up yesterday. 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 has moved out of oversold extreme.
Trading Idea
Wait for confirmation of the reversal.
