Market News
- Stocks rose on Tuesday on news that face-to-face talks between U.S. and China trade negotiators would begin next week. A batch of stronger-than-expected earnings also lifted market sentiment. Dow Jones was up 177 points while S&P 500 and Nasdaq Composite rose 20 and 47 points respectively
- U.S. Trade Representative Robert Lighthizer would travel to Shanghai next week to meet China’s officials for the trade negotiations. White House officials are looking at a longer-term timeline. Washington is also expecting Beijing to start buying U.S. agriculture products soon.
- Global stocks appeared to receive support from expectations that the European Central Bank (ECB) and the Fed could soon cut interest rates. The ECB is seen cutting rates by 10 basis points on Thursday, with the U.S. central bank expected to lower rates by 25 basis points at the end of this month.
Market Views
- Asian stocks were higher on Wednesday following developments on the U.S.-China trade front. Nikkei 225 index was up 107 points while Hang Seng index rose 248 points, aided by a strong showing in US market overnight.
- Boris Johnson is set to be the U.K.’s next prime minister after winning the ruling Conservative Party’s leadership race on Tuesday. Johnson has previously stated that the U.K. must leave the European Union by the October 31 deadline “do or die, come what may.”
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,350
Target price:
Protective stop:
Outlook
Price is moving within a triangle pattern and is supported by the rising trendline. It could be testing the overhead all time high resistance at 27,403. We could see a higher price target at 27,865 should price break and stay above the resistance point. This is also the Fibonacci 162% projection target. Stochastic could turn up again but is already in the overbought extreme. MACD is still bullish but there was a previous bearish divergence warning and also the histogram is weak at the moment.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,760
Target price:
Protective stop:
Outlook
Price gaped up this morning after it sat well at the 20EMA and the triangle trendline support. It is testing the overhead downward trendline. Should price break above the trendline, it could be testing 29,072 resistance point. However, we could see price moving lower to the 20EMA and even the lower trendline support if price is capped at the upper trendline. The Stochastic is rising but is still weak at the moment. The MACD is also bullish and could have a bullish crossover in the coming session
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7917
Target price :
Protective stop:
Outlook
Price tested the 20EMA again last night. Price is currently sitting on the 20EMA support. The MACD divergence warning is giving concern even though MACD is still bullish. Price could be heading towards the lower downtrend line should price fail to hold at the 20EMA. Stochastic has turned down from the overbought region and is falling.
Trading Idea
Wait for new trading idea and opportunities.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3004
Target price:
Protective stop :
Outlook
Price tested the trendline which is also the 20EMA and rebounded. It broke above the declining trendline today. Should it stay above the declining trendline, we could see price heading towards its all time high resistance at 3019 or even higher at 3049. Stochastic could turn up and the MACD is still bullish at the moment.
Trading Idea
Buy at 3004 for 3050 with stop below 2970
