Market News
- Stocks closed higher on Friday, boosted by bank shares, as investors looked ahead to a key meeting between U.S. and China. Wall Street also wrapped up its best first half to a year in two decades. Dow Jones was higher 73 points, S&P 500 was up 16 points and Nasdaq Composite rose 38 points.
- U.S. and China agreed on Saturday to restart trade talks after Trump offered concessions including no new tariffs and an easing of restrictions on Chinese tech giant Huawei in order to reduce tensions with Beijing. However, Trump said the issue of Huawei will be resolved only at the conclusion of the negotiations.
- Beijing also agreed to make unspecified new purchases of U.S. farm products and return to the negotiating table. Still, no deadline was set for a deal.
Market Views
- Asia Pacific markets rose in Monday morning trade after Trump and Xi agreed to a truce while holding off slapping additional tariffs on Chinese import into the U.S. in an effort to resume trade talks. Beijing had agreed to continue negotiation but wants respect. Nikkei was up 383 points but Hong Kong was closed for a holiday today.
- Morgan Stanley CEO James Gorman said that Washington and Beijing must come to a truce in their dispute, otherwise “it will have a devastating effect to the global economy.”
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,797
Target price:
Protective stop:
Outlook
Price broke above a continuation pattern, the flag pattern, with a bullish green candlestick on Friday. The 20EMA is still bullish and heading upwards. Price is going to test its previous high at 26,909. Should price manage to break above that high, it could go higher to test the flag pattern target at 27,500. Stochastic could be turning up again. MACD is still bullish and a bullish MACD crossover is likely in the near term.
Trading Idea
Wait for dip to buy or buy on the break of 26,909.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation : Long
Last : 28,616
Target price: 29,510
Protective stop: 28,000
Outlook
Price 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. Hong Kong is closed for a holiday today.
Trading Idea
Buy dip to 28,500 for 29,510 with stop below 28,000. Trade idea was executed 27 June 2019.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation : Long
Last : 7760
Target price : 7790
Protective stop: 7550
Outlook
Price rebounded from the downtrend line on 26 June and has been moving higher. The 20EMA is still strong and bullish. Price could test its previous high at 7790 again. A move above 7790 would hint at a possible higher target at 7859 and even 8015. Stochastic could be turning up again. MACD is still bullish and a bullish MACD crossover is likely in the near term.
Trading Idea
Buy 7620 for 7790 with stop below 7550. Trade idea was filled 27 June 2019.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,661
Target price:
Protective stop :
Outlook
Price broke above the rectangle consolidation range last Friday with a bullish green candlestick. It gap up today and has moved above the Fibonacci 62% of the decline from 3rd May to 4th June. Price could be heading towards 22,030 should it stay firm above the Fibonacci 62% today. The 20EMA is bullish and heading upwards. Stochastic has turned up at the moment. MACD is bullish and there was a bullish MACD crossover.
Trading Idea
Wait for better trading opportunities.
