Market News
- Last Friday, strong earnings from Alphabet and Starbucks and better-than-expected GDP data pushed the S&P 500 and Nasdaq Composite to record highs. S&P 500 closed 22 points higher while Nasdaq gained 91 points. Dow Jones was up 51 points.
- U.S.-China trade talks are also set to resume this week, with a trade negotiator from Washington scheduled to fly to China today for their first in-person negotiations with Beijing officials since a G20 truce last month.
- However, expectations for a major breakthrough of the Sino-U.S. trade talks are low, with National Economic Council Director Larry Kudlow telling CNBC last Friday that he “wouldn’t expect any grand deal.”
Market Views
- Stocks in Asia got off to a cautious start on Monday as markets count down to a likely cut in U.S. interest rates this week with much riding on whether or not the Fed signals yet more are in the pipeline. Nikkei was down 119 points while Hang Seng slipped 329 points.
- Data out over the weekend showed profits earned by China’s industrial firms contracted in June, fuelling concerns that the bruising trade war will drag on economic growth.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,139
Target price:
Protective stop:
Outlook
Price has been consolidating in a tight range for the past 12 days. Support is at 27,107 and 20EMA support is providing another layer of support as well. As long as the index stays above 27,100 we are think there is a good chance of this index going to the Fibonacci 162% projection point at 27,865. MACD is bullish but there was a previous divergence warning. Stochastic is near to its overbought extreme.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,082
Target price:
Protective stop:
Outlook
Price has been capped by the declining trendline but is supported at 27,799. This index could be consolidating in between this range. However, we could see the index falling to 27,230 should price break below the 27,799. The Stochastic is falling at the moment. The MACD is also weak and the slow line is very near to the zero line.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation : Long
Last : 7992
Target price : 8100
Protective stop: 7920
Outlook
Price broke and closed above the all time high resistance at 7979, creating a new all-time high at 8035. Price is also breaking out from the triangle pattern. We could see price moving higher towards 8109, the Fibonacci 127%, should price stay above the 7979. The Stochastic is turning up and the MACD is still bullish and above the zero line.
Trading Idea
Buy 7998 for 8100 with stop below 7920
S&P 500 Index
(CFD Symbol: US500)
Trend : Bullish
Recommendation : Long
Last : 3019
Target price: 3050
Protective stop : 2970
Outlook
Price tested the trendline which is also the 20EMA and rebounded. It broke above the declining trendline and closed at its record high with a bullish green candlestick on last Wednesday. Price could be heading towards the Fibonacci 127% projection target at 3049. As long as price stays above the uptrend, it should be progressing towards target of 3049. Stochastic is turning up and the MACD is still bullish at the moment. A bullish MACD crossover is likely in the near term.
Trading Idea
Buy at 3004 for 3050 with stop below 2970 was triggered on 24 July 2019
