Market News
- U.S. stocks rose on Thursday after two days of declines, backed by strong gains in Disney. Dow was up 101 points, S&P 500 rose 11 points and Nasdaq Composite gained 44 points.
- Oil prices spiked after two oil tankers were attacked in the Gulf of Oman on concerns of a supply disruption. It was not immediately clear who was responsible for the attacks, but it heightened tension in the Middle East and between the U.S. and Iran.
- Lingering U.S.-China trade tensions kept investors on edge. Walmart Inc, Target Corp and more than 600 other companies urged Trump in a letter on Thursday to resolve the trade dispute with China, saying tariffs hurt American businesses and consumers.
Market Views
- Asia Pacific shares traded mixed on Friday as crude oil rose follow attacks on two tankers the Middle East raised tension and curb optimism following overnight NY markets advance. Nikkei 225 put on 70 points while Hang Seng declined 148 points following unrest over an extradition bill.
- Investors will be watching out for the release of China’s industrial production data for the month of May, set to be released later at 3pm.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,120
Target price:
Protective stop:
Outlook
Price has been consolidating within a flag pattern after hitting 26,144, the support-turned resistance level, which is also the Fibonacci 62% of the decline from 1st May to 14th May. Price hit 26,144 yesterday again. It is also at the edge of the flag pattern. Do watch out for a breakout. A move above 26,144 would likely to bring the index higher to test its previous high at 26,710. Stochastic is into the overbought region but MACD is still bearish at the moment.
Trading Idea
Wait for confirmation of the flag pattern.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,177
Target price:
Protective stop:
Outlook
A bearish evening star was formed on Wednesday, hinting of a possible price top. Yesterday, price tested the gap support zone and closed higher. However, with the bearish 20EMA, we still think price could be on the way down testing the low at 26,665 again. A move below 26,665 would bring price lower to 26,327. Stochastic is moving out of oversold extreme but still weak. MACD is still bearish and the fast line could be turning down again.
Trading Idea
Wait for better trading opportunities.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7507
Target price
Protective stop:
Outlook
Price moved above 20EMA after climbing higher from a low formed at 6935. Price tested 7570 but an indecision Doji candlestick was formed on Tuesday. Price could be reaching a top and we could see a potential price retracement. Price could be moving towards the 20EMA at 7381. Stochastic is moving higher and is near the overbought region. MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6593
Target price:
Protective stop :
Outlook
Price reached a high at the Fibonacci 127% of the decline from 22nd May to 3rd June. Price closed with an indecision candlestick for the past two days. MACD is bullish but the fast line could be turning down. There is also a potential bearish divergence warning from MACD. Stochastic is in the overbought region and could be turning down. We could see a possible price retracement in the near term. A move below 6563 would bring the price lower to test the 20EMA at 6500.
Trading Idea
Wait for better trading idea.
