Market News
- Stocks fell on Friday after a sharp decline in Broadcom shares put other chipmakers and the broader tech sector under pressure. Dow Jones slid 17 points while S&P 500 and Nasdaq Composite ended lower by 4 and 40 points respectively.
- Sentiment on Wall Street was also dampened by disappointing industrial data from China that released on last Friday. That figure came in at 5%, widely below expectations as compared to a 5.5% growth from a year earlier expected by analysts polled by Reuters. It is the slowest pace of growth in 17 years.
- Investors are also looking ahead to an upcoming two-day meeting on monetary policy by the Fed, amid expectations that the U.S. central bank could be cutting interest rates soon.
Market Views
- Asian stocks were higher on Monday morning as investors await a U.S. Federal Reserve meeting set to happen later in the middle of the week. Nikkei 225 index was up 19 points while the Hang Seng index surged 252 points.
- According to Fed watchers, there are three factors that could result in the U.S. central bank not moving on interest rates this time. The looming G-20 summit at which the U.S. and China could reach a trade agreement; a desire not to be seen as overly influenced by the financial markets and Trump’s hectoring; and the desire to avoid making December’s rate hike look like a policy mistake.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,184
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 broke up the flag pattern and hit 26,144 on last Friday again. Price is likely to test its previous high at 26,710. Stochastic is into the overbought region but still looks strong at the moment while MACD is rising towards its zero line.
Trading Idea
Buy around 26,170 for a test to 26,700. Stop can be placed below 25,850.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,410
Target price:
Protective stop:
Outlook
Price tested the gap support zone at 26,950 and closed higher last Thursday after a bearish evening star was formed. 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 weak and could be turning down soon. MACD is still bearish at the moment.
Trading Idea
Wait for better trading opportunities.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7509
Target price
Protective stop:
Outlook
Price moved above 20EMA after climbing higher from a low formed at 6935. Price is consolidating after a Doji candlestick was formed on last Tuesday. Price could be reaching a top and we could see a potential price retracement. Price could be moving towards the 20EMA at 7407. Stochastic is in the overbought region and could be turning down. MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6591
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 three 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 confirmation of the reversal to short.
