Market News
- Overnight on Wall Street, stocks held steady with the June rally on hold ahead of the U.S.-China trade talks. Dow Jones was up 8 points; S&P 500 was down 5 points while Nasdaq Composite lost 26 points.
- Trump and Xi are expected to discuss the ongoing trade war between the U.S. and China at the upcoming G-20 summit, which is set to start Friday in Japan. Investors are hopeful the two leaders will get closer to a deal that will end the conflict.
- U.S. consumers will delay or forgo technology upgrades if Trump imposes a new round of 25% tariffs on Chinese goods, slowing the U.S. innovation engine, technology industry executives said on Monday.
Market Views
- Asian stocks were lower in Tuesday morning trade as investors looked toward to a meeting between Trump and Xi set to happen later in the week. Hang Seng slid 367 points and Nikkei dropped 109 points.
- Tensions between the U.S. and Iran have remained high as U.S. on Monday imposed sanctions on Iran over the latter’s shooting down of an unmanned American drone last week. Tapas Strickland, markets strategist at National Australia Bank, said the latest sanctions by Washington on Tehran “appear to be more gloss than substance” given that the current restrictions are “already very harsh.”
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,711
Target price:
Protective stop:
Outlook
Price reached a new historical high of 26,909 after breaking above a flag pattern on last Monday. Price has been consolidating for the past two days. As long as price hold at 26,655, 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. A move below 26,655 could hint at the possible pullback. Stochastic is into the overbought region and could turnaround while MACD is bullish.
Trading Idea
Wait for better trade idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,224
Target price:
Protective stop:
Outlook
Last Friday, price consolidated and formed an inside bar inside Wednesday’s range. Another inside bar was formed within the range yesterday again. Price broke down the consolidation range and move lower. Price could go for a pullback and it could be testing the 20EMA at 27,880. 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.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7701
Target price
Protective stop:
Outlook
Price could be taking a rest as it has been consolidating for the past two days after breaking above the downtrend line. The 20EMA is still strong and bullish. However, we could expect price to retrace back to the downtrend line at 7590. Stochastic is in the overbought region and could turnaround. MACD is bullish and it is above its zero line.
Trading Idea
Buy dip to 7590 with stop below 7490 for 7860.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,186
Target price:
Protective stop :
Outlook
Price was resisted by the Fibonacci 62% of the decline from 3rd May to 4th June. Price is now testing the 20EMA but we don’t think price could hold at this support. Price could be heading towards 20,906 or even 20,811. Stochastic has turned down near the overbought region. MACD is still bearish and the fast line could be turning down soon.
Trading Idea
Wait for better buying opportunities.
