Market News
- U.S. stocks traded in a tight range on Monday as Wall Streets tempered its expectations for the U.S.-China trade negotiations which currently under way in Shanghai. Investors also looked ahead to the latest monetary policy decision from the Federal Reserve.
- The Dow Jones index rose 28 points to close at 27,221 while S&P 500 was lower by 4 points. The tech-heavy Nasdaq Composite fell 36 points to close at 8,293, led by the losses from Amazon, Microsoft and Facebook.
- The Fed will announce its latest decision on whether to adjust interest rates at 2 p.m. ET Wednesday. A press conference will follow to address the state of the economy later at 2:30 p.m. ET by Fed Chair Jerome Powell.
Market Views
- Asian stocks edged up in Tuesday morning trade as investors await developments from U.S.-China trade talks this week as well as monetary policy decisions from major central banks. Nikkei 225 was up 146 points and Hang Seng rose 131 points.
- The Fed, which seeks to keep inflation around 2%, has had trouble sustaining price growth in recent months despite a healthy economy and low unemployment. Some economists and Fed officials think that rates need to be lowered in the face of decelerating GDP in the U.S. and a gloomier growth outlook overseas as Washington-led trade wars continue.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,266
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 also near to its overbought extreme.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,260
Target price:
Protective stop:
Outlook
Price has been capped by the declining trendline but is supported by the gap support and Fibonacci 38% retracement point at 28,020. This index could be consolidating in between this range. However, we could see the index falling to 27,230 should price break below the 28,020. 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 : 8004
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. It is currently consolidating within a pennant pattern. We could see price moving higher towards 8109 or even 8260, 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. Trade idea was executed on 26 July 2019.
S&P 500 Index
(CFD Symbol: US500)
Trend : Bullish
Recommendation : Long
Last : 3025
Target price: 3050
Protective stop : 2970
Outlook
Price tested the trendline which is also the 20EMA and rebounded. Price has been rallying after breaking above the declining trendline with a bullish green candlestick 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 rising and the MACD is bullish at the moment.
Trading Idea
Buy at 3004 for 3050 with stop below 2970 was triggered on 24 July 2019
