Market News
- Overnight on Wall Street, S&P 500 snapped 4-day slide, powered by bank shares, as investors await trade clues from an upcoming meeting between the world’s two largest economies. Dow Jones slipped 11 points while Nasdaq Composite was up 57 points.
- Ahead of the G-20 summit, sources told CNBC that China is looking for a “balanced” trade deal at the meeting, though the U.S. isn’t interested. An agreement between Trump and Xi at the G-20 summit in Japan could avert the next round of tariffs on additional $300 billion worth of Chinese imports.
- The drawn out trade war has slowed global growth and pushed many central banks towards cutting interest rates to support their economies. Any sign the trade war will come to an end would be a significant boost for the global economic outlook.
Market Views
- Asian stocks dipped in Friday morning trade as investors watched for developments from the G-20 summit in Osaka which set to kickoff later today. Nikkei was down 117 points and Hang Seng slid 163 points.
- Trump said on Friday he will discuss trade with Japanese Prime Minister Shinzo Abe at their talks on the sidelines of a G-20 summit in Osaka, western Japan, as Washington pushes to cut its big trade deficit.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,558
Target price:
Protective stop:
Outlook
Price retraced after a Shooting Star candlestick was formed on last Friday. It is currently consolidating within a flag pattern. Price could be testing the support at 26,273 which is the 20EMA and the Fibonacci 62% of the rally from 13th June to 21st June. Watch out for the breakout above 26,652 for the rally towards its previous high at 26,909. Stochastic has turned down but MACD is still bullish.
Trading Idea
Watch the flag channel for direction clues.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation : Long
Last : 28,520
Target price: 29,510
Protective stop: 28,000
Outlook
Price could be taking a rest after rebounding from the low at 26,665. It is currently consolidating within a triangle pattern. The 20EMA is still strong and bullish. Watch out for the breakout of the triangle. Should price break above 28,802, price could be testing the overhead gap resistance zone at 29,377 to 29,480. Stochastic is in the overbought region but still look strong. MACD is also bullish at the moment.
Trading Idea
Buy dip to 28,500 for 29,510 with stop below 28,000. Trade idea was executed yesterday.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation : Long
Last : 7649
Target price : 7790
Protective stop: 7550
Outlook
Price tested the downtrend line three days ago, after breaking below the consolidation range. A Doji candlestick was formed on Wednesday. A bullish green candlestick was followed through last night. Price could rebound from here and test the previous high at 7790 again. The 20EMA is still strong and bullish. Stochastic has turned down but MACD is still bullish at the moment.
Trading Idea
Buy 7620 for 7790 with stop below 7550. Trade idea was filled last night
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,221
Target price:
Protective stop :
Outlook
Price was resisted by the Fibonacci 62% of the decline from 3rd May to 4th June. It could be currently consolidating within a rectangle pattern. The flat 20EMA is also hinting at the sideway phase. Watch out for the breakout above the rectangle for price to test its previous high at 21,631 again. Stochastic could turn up and MACD is bullish at the moment.
Trading Idea
Wait for better trading opportunities.
