Market News
- Last night, U.S. markets were closed for the July 4 holiday, which is the Independence Day.
- Investors awaited U.S. employment data, a key release that could make or break market expectations about aggressive policy easing by the Fed. All eyes are on U.S. non-farm payrolls, due later in the day, which is expected to jump to 160,000 in June compared with 75,000 in May.
- Prospects of global easings has sent government bond yields to multi-year low around the world. Germany’s 10-year government bond yield, a benchmark for euro zone debt fell to -0.4% and matched the European Central Bank’s deposit rate for the first time. Yields on U.S. 10-year Treasuries also hit their lowest since November 2016 on Wednesday.
Market Views
- Asia pacific shares were traded lower on Friday ahead of the upcoming release of the U.S. nonfarm payrolls report, which could provide clues as to whether the Fed will cut interest rates at its monetary policy meeting later this month. Nikkei dropped 5 points while Hang Seng rose 32 points.
- White House Economic Adviser Larry Kudlow said the bilateral talks between both sides top negotiators would resume next week. He said “I don’t know precisely when. They’re on the phone. They’re going to be on the phone this coming week and they’ll be scheduling face-to-face meetings,”
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation : Long
Last : 26,976
Target price: 27,500
Protective stop: 26,880
Outlook
Price hit its previous high of 26,909 and closed at its record high on Wednesday, following a break out above a continuation Flag pattern. Last night, price managed to stay firm above 26,909 as well. 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 : 28,807
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. 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 : 7873
Target price :
Protective stop:
Outlook
Price hit its record high on Wednesday, following the rebound from the downtrend line. The 20EMA is still strong and bullish. Price hovered around its record high with the U.S. markets were closed for a holiday last night. Should price stay firm above 7859, price could move higher to test 8000. Stochastic is in the overbought region but still looks strong. MACD is bullish at the moment but could be starting to show divergence.
Trading Idea
Wait for new trading idea and opportunities.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2998
Target price:
Protective stop :
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
Wait for trading idea and opportunities.
