Market News
- Overnight the Dow Jones Index declined more than 150 points in its worst day of June after Fed officials tempered rate-cut enthusiasm while optimism of a trade deal dimmed ahead of Trump-Xi meeting. S&P 500 was lower by 27 points and Nasdaq Composite dropped 120 points.
- Fed Chair Jerome Powell on Tuesday said the central bank is “insulated from short-term political pressures,” pushing back against Trump’s demand for a significant rate cut. He also said Fed policymakers are wrestling with whether uncertainties around U.S. tariffs, Washington’s conflict with trading partners and tame inflation require a rate cut.
- On the U.S.-China trade front, Washington hopes to re-launch trade talks with Beijing after Trump and Xi meet in Japan on Saturday, but Washington will not accept any conditions around the U.S. use of tariffs in the dispute. Trump advisers have said no trade deal is expected at the meeting but they hope to create a path forward for talks.
Market Views
- Stocks in Asia slipped on Wednesday after Federal Reserve officials curbed expectations in the markets for aggressive monetary easing. Worries over trade talk between U.S. and China also weigh on the Asian markets. Hang Seng was up 7 points while Nikkei slid 117 points.
- Oil prices rose over 1% on Wednesday to hit their highest in nearly a month as widely-watched data showed U.S. crude stockpiles fell more than expected. Trump threatened on Tuesday to obliterate parts of Iran if it attacked “anything American,” in a new war of words with Iran, which condemned fresh U.S. sanctions on Tehran as “mentally retarded.”
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,554
Target price:
Protective stop:
Outlook
Price reached a new historical high of 26,909 after breaking above a flag pattern last Monday. A Shooting Star candlestick on Friday provided a hint of a possible pullback which was confirmed by a bearish Engulfing pattern last night. Price could be testing the support zone around 26,215 to 26,273, which is the Fibonacci 62% of the rally from 13th June to 21st June as well as the 20EMA. Stochastic is into the overbought region and has turned around. MACD is bullish but a bearish crossover has formed.
Trading Idea
Wait for better trade idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,284
Target price:
Protective stop:
Outlook
Price broke below the inside bar range with a bearish red candlestick yesterday. It closed the gap formed last Thursday as well. Price tested the other gap support and the Fibonacci 38% of the rally from 4th June to 20th June around 27,230 to 27,980. A move below this support zone will hint at possible downside at 27,480 which is the Fibonacci 62%. Stochastic is in the overbought region and could be turning down.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7610
Target price
Protective stop:
Outlook
Price tested the downtrend line yesterday, after breaking below the consolidation range. The 20EMA support is at 7540. We do not think price can hold at 20EMA support. Should price breaks below the downtrend line, price could retrace back to Fibonacci 38% of the rally from 3rd June to 20th June at 7463. Stochastic is in the overbought region and has turned down while a bearish MACD crossover was formed.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,073
Target price:
Protective stop :
Outlook
Price was resisted by the Fibonacci 62% of the decline from 3rd May to 4th June. It broke below the 20EMA as expected. Price could be heading towards 20,906 or even 20,807 the Fibonacci 62% of the rally from 4th June to 20th June. Stochastic has turned down near the overbought region. MACD is still bearish and there was a bearish MACD crossover.
Trading Idea
Wait for better trading opportunities.
