CFD Indices 4 July 2019

Market News

  • Dow and Nasdaq Composite both closed at its record high while S&P 500 rose 22 points with growing expectations that the Fed would take a more dovish turn as a raft of data provided more evidence of a slowing US economy.
  • According to ADP and Moody’s Analytics, the U.S. private payrolls increased by 102,000 in June, which was lower than an expectation of 135,000 polled by Dow Jones. This disappointing data strengthens the Fed’s case for lowering rates at its monetary policy meeting at the end of this month.
  • Chief investment officer at Advisors Asset Management Scott Colyer said general business indicators around the globe are showing some slowing. He thought that there is virtually a 100% chance that the Fed will lower rates at the July meeting as Fed will see the economic indicators in U.S. are beginning to slow.

Market Views

  • Asia Pacific shares traded higher on Thursday morning as shares on Wall Street saw a record close overnight. Nikkei was up 61 points and Hang Seng was up 30 points. Australia’s stock index, ASX200, was up 0.43% on Thursday morning.
  • A tweet from Trump calling for easier monetary policy added to expectations of easier Fed policy. Trump said U.S. should “match” monetary policies from China and Europe, noting they are “playing big currency manipulation game and pumping money into their system in order to compete with the U.S.”

Dow Jones Index

(CFD Symbol: US30)

Trend : Bullish
Recommendation : Long
Last : 26,955
Target price: 27,500
Protective stop: 26,880

Outlook

Price hit its previous high of 26,909 and closed at its record high last night, following a break out above a continuation Flag pattern. The 20EMA is still bullish and heading upwards. Price could be testing the flag pattern target at 27,500 as long as it does not fall below its 20EMA line. Stochastic has turned up and MACD is still bullish.

Trading Idea

Buy on the break of 26,909 trading idea was executed on 3 July 2019


Hang Seng Index

(CFD Symbol: HK50)

Trend : Bullish
Recommendation : Long
Last : 28,940
Target price: 29,510
Protective stop: 28,000

Outlook

Price broke above the triangle pattern with a gap up on Tuesday but has not made big progress in the rally. The 20EMA is still strong and bullish. If price can stay firm 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 bullish at the moment but could be starting to show divergence.

Trading Idea

Buy dip to 28,500 for 29,510 with stop below 28,000. Trade idea was executed on 27 June 2019.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7857
Target price :
Protective stop:

Outlook

Price rebounded from the downtrend line last Wednesday. The 20EMA is still strong and bullish. Price hit and closed at its record high last night with a bullish green candlestick. Should price stay firm above 7859, price could move higher to test 8000. Stochastic is in the overbought region but still looks strong and MACD is also bullish at the moment.

Trading Idea

Wait for new trading idea and opportunities.


Australian 200 Index

(CFD Symbol: AUS200)

Trend : Bullish
Recommendation : Long
Last : 6769
Target price: 6861
Protective stop : 6655

Outlook

Price broke above a flag pattern yesterday with a bullish green candlestick. It also hit its record high at 6752. The 20EMA is still strong and bullish. Should price stay firm above 6752, price could be heading towards the higher resistance point at 6861. Stochastic has turned up again and the MACD is still bullish at the moment.

Trading Idea

Buy on breakout of 6755 for 6861 with stop below 6655. Was filled on 3 July 2019.

Related Posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.