Market News
- Dow surged more than 350 points as Wall Street increased bets on a U.S.-China trade deal after Trump said he will be meeting with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit. S&P 500 rose 28 points while Nasdaq Composite was up 108 points.
- Sentiment was also lifted by hope that the Fed will ease monetary policy later this year. The Fed is widely expected to leave interest rates unchanged at this meeting, though investors will be watching out for hints on rate cuts later in the year.
- Stocks briefly fell from their highs after Bloomberg reported the White House was looking for legal ways to demote Powell from his spot at the Fed. Larry Kudlow, director of the National Economic Council, later said the president was not planning to demote Powell.
Market Views
- Stocks in Asia rose in Wednesday morning following positive developments overnight on the U.S.-China trade front. Nikkei was up 348 points while Hang Seng jumped 657 points.
- Investors also cheered the prospects of more simulative measures from Europe. Mario Draghi, president of the European Central Bank, said Tuesday: “In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required.”
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,488
Target price: 26,710
Protective stop: 25,850
Outlook
Price broke above a flag pattern on Monday. Yesterday, price moved above 26,144 which was the support turned resistance level, which is also the Fibonacci 62% of the decline from 1st May to 14th May, with a bullish green candlestick. Price is likely to test its previous high at 26,710 again. Stochastic is into the overbought region but still looks strong at the moment. MACD is bullish and is also rising above its zero line.
Trading Idea
Hold on to long at 26,170 for 26,700.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,201
Target price:
Protective stop:
Outlook
Yesterday, price shot up with a bullish green candlestick. It broke above its previous high as well as the 20EMA resistance point. Price tested Fibonacci 38% of the decline from 3rd May to 4th June at 28,072 as well. As long as price can stay above 28,072, it is likely to test the Fibonacci 62% at 28,942. Stochastic is still rising but the MACD is still bearish at the moment.
Trading Idea
Trading buy at 28,075 for 28,670 with stop at 27,900.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7648
Target price
Protective stop:
Outlook
Price tested its previous high as well as the Fibonacci 38% of the decline from 6th May to 13th May at 7638 yesterday. With bullish 20EMA, price could move higher towards its previous all time high at 7860 as long as price could stay above 7580. Stochastic is in the overbought region but still looks strong at the moment. MACD is rising towards its zero line as well.
Trading Idea
Buy dip to 7590 with stop below 7490 for 7860.
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6689
Target price:
Protective stop :
Outlook
Price rebounded from the resistance-turned support level after consolidating for the past few days. It closed above the Fibonacci 127% of the decline from 22nd May to 3rd June yesterday with a bullish engulfing candlestick pattern. With a bullish 20EMA, price could be on the way towards Fibonacci 200% at 6781. Stochastic is still strong at the moment and the MACD is still rising.
Trading Idea
Wait for dip for better buying opportunities.
