Market News
- Wall Street was closed for the Labour Day holiday last night, but futures contracts tied to the major indexes were trading and spiked lower.
- Trade talks remain no closer to easing tensions as a date for negotiators to meet in September has yet to be determined with China’s focus increasingly turns towards the anniversary celebrations and then to the Party’s Fourth Plenum scheduled also for October.
- Beijing has lodged a complaint against Washington at the World Trade Organization over U.S. import duties, the Chinese Commerce Ministry said on Monday. Under WTO rules, Washington has 60 days to try to settle the latest dispute. It could end with China gaining WTO approval to take trade sanctions, if U.S. is found to have broken the rules.
Market Views
- Stocks in Asia Pacific were mixed in Tuesday morning as investors await Reserve Bank of Australia’s interest rate decision, due around 12:30 p.m. Singapore time. RBA announced an unchanged interest rate policy and rate at 1%. Nikkei 225 index rose 36 points while Hang Seng index fell 24 points as at 1pm today.
- Recent data suggests the Australian economy remains soft with little sign of retail picking up on the back of tax cuts. Australian Retail sales for July declined 0.1% on a month-on-month, seasonally adjusted basis, lower than expectations of a 0.2% increase in a Reuters poll.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,273
Target price:
Protective stop:
Outlook
Price closed with a shooting star candlestick pattern after testing the mid-June low resistance level which is also near to the Fibonacci 62% retracement point last Friday. Price gapped down yesterday. If this gap cannot be closed, price is likely to be resisted at this level and we could see a price decline back to test its previous low at 25,280. Stochastic is still rising but MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,612
Target price:
Protective stop:
Outlook
Price tested the declining 20EMA again on last Friday, but the attempt was not successful as price could not break above the 20EMA resistance level. We expect the index to trend lower and test its previous low at 24,941 again as the steep slope of the 20EMA is hinting at a strong downtrend. A move lower than 24,941 would target for 23,990. Stochastic is turning down at the moment. MACD is still bearish and a bearish MACD crossover is likely in the near term
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7646
Target price :
Protective stop:
Outlook
Price is still moving within a previous high and previous support point. Price is likely to move within the resistance at 7780 and support at 7355 until it can move out of this range. Stochastic has turned up again, but Stochastic is not strong at the moment. MACD is still bearish with both of MACD’s lines now below the zero line. There is a divergence warning from the histogram and a bearish crossover is likely in the near term
Trading Idea
Wait for better trading idea
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6637
Target price:
Protective stop :
Outlook
Price managed to close above the 50EMA for the past three consecutive days. It is now capped by the previous high resistance and the Fibonacci 50% retracement point. As long as price can move above this level, we could see price moving higher to test 6730. A failure move would target for the low at 6410. Stochastic is rising at the moment but MACD is still bearish.
Trading Idea
Wait for better trading idea.
