Market News
- Stocks slipped from record highs on Tuesday after Trump said there was still a long way to a trade deal with China and he could impose tariffs on additional US$325 billion worth of Chinese goods. Dow Jones index was lower by 23 points, S&P 500 slipped 10 points and Nasdaq Composite index fell 35 points.
- Trump said that Washington and Beijing have a “long way to go” on trade, adding the U.S. can slap tariffs on an additional $325 billion worth of Chinese goods “if we want.” Trump’s statement sapped market optimism and led to a decline from record high.
- The protracted trade fight between the two economic powerhouses has raised concerns over its potential impact on economic growth not just between the two largest economies but also on the global economy as well as business confidences.
Market Views
- Asian stocks fell on Wednesday morning, following the overnight developments on the US-China trade front. A stronger than expected US Retail Sales data tempered expectations of an aggressive policy easing by the US central banks also dampened market optimism. Nikkei 225 index declined 70 points and Hang Seng dropped 96 points.
- Fed Chair Jerome Powell on Tuesday reiterated his pledge to “act as appropriate” to keep the economic expansion going. His comments come amid expectations that the central bank could cut interest rates at its monetary policy meeting later in July.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,346
Target price:
Protective stop:
Outlook
Price hit its record high at 27,403 on Monday. The 20EMA is still bullish and is rising. Price is heading towards the Flag pattern target at 27,500. However, a potential divergence warning is giving concern. Price is also forming a small indecision candlestick for the past two days. We could see a possible retracement back to the uptrend line should price break below 27,269.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,543
Target price:
Protective stop:
Outlook
Price failed to break above the gap resistance at 28,653 after testing it for a fourth consecutive day. The 20EMA is relatively flat, hinting at the sideway movement. Price is likely to range between the gap support and gap resistance zone around 28,125 to 28,653. 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 : 7922
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. However, the strength of the upwards movement has decreased along with the rally, which is giving concern. We could see a possible price reversal should it break below the uptrend line. Stochastic is in the overbought region and is turning down.
Trading Idea
Wait for new trading idea and opportunities.
S&P 500 Index
(CFD Symbol: US500)
Trend : Bullish
Recommendation : Long
Last : 3004
Target price: 3046
Protective stop : 2985
Outlook
Price recorded a new high at 3019 on Monday, after breaking out from a continuation Flag pattern. The 20EMA is still strong and bullish. Price could be heading towards its Flag pattern target at 3046, which is also the Fibonacci 138% of the decline from 1st may to 3rd June. However, there was a divergence warning. We could see a possible price reversal should price break below the uptrend line. Stochastic is in the overbought region and is turning down.
Trading Idea
Buy at 3003 for 3046 with stop below 2985 was triggered on 12th July.
