Market News
- Stocks edged upward toward new records, but the gains were muted as Wall Street remained cautious to start off the corporate earnings season. Dow Jones closed 27 points higher, S&P 500 ended the day just above the flatline at 3,014 and Nasdaq Composite rose 14 points.
- The outlook for this earnings season is bleak. Analysts expect S&P 500 earnings to have fallen by 3% in the second quarter, according to FactSet data.
- China’s economic growth slowed to 6.2% in the second-quarter from a year earlier, its weakest pace in at least 27 years, as the trade war with the U.S. took its toll. Still, China’s gross domestic product growth was in line with expectations. Trump tweeted that the slowdown in China’s economic growth is “why China wants to make a deal.”
Market Views
- Stocks in Asia were lower after the minutes from the Reserve Bank of Australia’s monetary policy meeting in July showed the central bank was ready to adjust interest rates if required. The Australian 200 Index was little changed. Hang Seng slipped 14 points and Nikkei plunged 159 points.
- Reuters reported on Sunday that U.S. may approve licenses for companies to restart new sales to Huawei within two weeks. The Wall Street Journal had reported that Huawei is planning extensive layoffs in U.S. amid the struggle with its blacklisting.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,344
Target price:
Protective stop:
Outlook
Price continued its rally and made a record high again last night. The 20EMA is still bullish and is rising. Price is heading towards the Flag pattern target at 27,500. The Stochastic is in the overbought region but still strong at the moment as there is a bullish crossover. The MACD is also bullish at the moment and the fast line has turned up. However, a potential divergence warning could give concern.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,517
Target price:
Protective stop:
Outlook
Price tested the gap resistance at 28,653 for the third consecutive days after rebounding from the gap support zone at around 28,019 to 28,105. The 20EMA is currently flat, hinting at the sideway movement. Price is likely to range between the gap support and gap resistance zone. Watch out for the breakout either way for directional clue. The Stochastic could turn around soon and the MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7968
Target price :
Protective stop:
Outlook
Price continued its rally after rebounding from the 20EMA with a bullish hammer candlestick last Tuesday. The 20EMA is still bullish and is rising. Price could be heading towards its nearest resistance point at 8000. The Stochastic is in the overbought region but still strong at the moment. The MACD is also bullish and the fast line is turning around. However, the strength of the upwards movement has decreased along with the rally, which is giving concern.
Trading Idea
Wait for new trading idea and opportunities.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,536
Target price:
Protective stop :
Outlook
Price has been consolidating within a Flag pattern since 1st July, after a gap up was formed. It is currently supported by the 20EMA. We could see price testing the gap support at 21,383. Watch out for the breakout either way for directional clue. The Stochastic is still weak but the MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
