- U.S. stocks closed higher on Wednesday, bolstering their gains for the month, after the Federal Reserve signalled possible interest rate cuts later this year. Dow rose 38 points, S&P 500 was up 8 points and Nasdaq Composite gained 33 points.
- Fed left interest rates unchanged at its monetary policy meeting, as was widely expected. Fed also said on Wednesday they were ready to battle growing global and domestic economic risks with interest rate cuts beginning as early as next month, as it took stock of rising trade tensions and growing concerns about weak inflation.
- Analysts at National Australia Bank said a new round of Fed easing is largely contingent on the outcomes from the upcoming G20 meeting between Trump and Xi, although the Fed partiality has shifted from a wait and see mode to an easing bias.
- Stocks in Asia Pacific were higher in Thursday morning after the Fed left interest rates unchanged overnight but opened the door to a potential rate cut on the horizon. Nikkei was up 130 points and Hang Seng rallied 225 points.
- Signs that China and U.S. are returning to the negotiating table after a six-week hiatus also bolstered market sentiment. U.S. Trade Representative Robert Lighthizer said he will confer with his Chinese counterpart Vice Premier Liu He before next week’s meeting between Trump and Xi in Osaka.
Dow Jones Index
(CFD Symbol: US30)
Last : 26,603
Target price: 26,710
Protective stop: 26,390
Price broke above a flag pattern on Monday. It 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 on Tuesday. Price could be on the way to test its previous high at 26,710. Stochastic is into the overbought region but still looks strong at the moment. MACD is bullish and is also rising above its zero line.
Hold on to long at 26,170 for 26,700. Bring stop higher to 26,390.
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,487
Price gapped up and closed above 28,072 the Fibonacci 38% of the decline from 3rd May to 4th June yesterday. Price is currently testing the Fibonacci 50%. With the bullish 20EMA, price could be on the way to the Fibonacci 62% at 28,942. Stochastic is still rising. MACD is still bearish at the moment, but the fast line is rising towards its zero line.
Trading buy at 28,075 for 28,670 with stop at 27,900.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 7726
Price broke above the downtrend line as well as the Fibonacci 38% of the decline from 6th May to 13th May at 7638 on Tuesday. With the bullish 20EMA, price could move higher towards its previous all time high at 7860. Stochastic is in the overbought region but still looks strong at the moment. MACD is bullish and it is above its zero line.
Buy dip to 7590 with stop below 7490 for 7860.
Australian 200 Index
(CFD Symbol: AUS200)
Last : 6726
Protective stop :
Price continued its rally after breaking above the consolidation range and the Fibonacci 127% of the decline from 22nd May to 3rd June, with a bullish engulfing candlestick pattern on Tuesday. With a bullish 20EMA, price could be on the way towards Fibonacci 200% at 6781. Stochastic is in the overbought region but still look strong at the moment. MACD is bullish and is still rising.
Wait for dip for better buying opportunities.