Market News
- The S&P 500 slipped slightly on Friday after reaching a fresh record high earlier in the day as Wall Street concluded a strong week of gains. Dow Jones closed the day 34 points lower and Nasdaq Composite was down 19 points.
- Stocks pared most of their gains after the Commerce Department barred five additional Chinese companies from buying U.S. components without approval. Chip stocks fell on the department’s decision. Micron Technology shares closed 2.6% lower while Advanced Micro Devices slid 3%. Xilinx shares also lost more than 2%.
- Despite Friday’s choppy trading action, stocks posted weekly gains as investors cheered the prospects of Fed cutting interest rates as soon as July. The Dow and S&P 500 both rose more than 2% for the week, while the Nasdaq climbed 3%. With last week’s gains, the S&P 500 is 17.7% for the year and was on track to post its best first half since 1997.
Market Views
- Stocks in Asia Pacific were higher on Monday as oil prices continued to rise as tensions between the U.S. and Iran lingered after the latter shot down an American surveillance drone. Nikkei rose 19 points while Hang Seng was higher by 88 points.
- Trump said on Sunday he was not seeking war with Teheran after a senior Iranian military commander warned any conflict in the Gulf region could spread uncontrollably and threaten the lives of US troops. Mike Pompeo, U.S. Secretary of State, said US is prepared to negotiate with no preconditions with Teheran.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,737
Target price:
Protective stop:
Outlook
Price reached a new historical high of 26,909 after breaking above a flag pattern on last Monday. A Shooting Star candlestick pattern is giving us concerns. The 20EMA is still strong and bullish. Price could be testing the next resistance point at 27,278, which is the Fibonacci 127% of the decline from 1st May to 3rd June. Stochastic is into the overbought region. MACD is bullish and is also rising above its zero line.
Trading Idea
Wait for better trade idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,648
Target price:
Protective stop:
Outlook
Last Friday, price consolidated and formed an inside bar inside Wednesday’s range. Tomorrow will be a NR4 price pattern and we will be watching it for clues. Price managed to stand firm above Fibonacci 50% of the decline from 3rd May to 4th June as well. With a bullish 20EMA, price could be on the way to the Fibonacci 62% at 28,942 or even the higher gap resistance at 29,480. Stochastic is still rising at the moment. MACD is still bearish, but the slow line is rising towards its zero line.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7752
Target price
Protective stop:
Outlook
Price continued its rally after breaking above the downtrend line. The 20EMA is still strong and bullish. Price could move higher towards its previous all time high at 7860. A move above 7860 could bring price higher to 8110, which is the Fibonacci 127% of the decline from 6th May to 3rd June. Stochastic is in the overbought region but still looks strong at the moment. MACD is bullish and it is above its zero line.
Trading Idea
Buy dip to 7590 with stop below 7490 for 7860.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2953
Target price:
Protective stop :
Outlook
Price hit a new historical high at 2963 on Friday. The 20EMA is still strong and bullish at the moment. Price could be on the way to 3020, the Fibonacci 127% of the decline from 1st May to 3rd June. Stochastic is in the overbought region but still look strong at the moment. MACD is bullish and it is rising above the zero line.
Trading Idea
Wait for better buying opportunities.
