Market News
- Overnight on Wall Street, stocks fell on the first trading day of a historically tough month, after poor U.S. economic data stoked global recession fears and further soured investor sentiment already hurt by heightened trade war concerns. Dow Jones plunged 285 points, S&P 500 declined 20 points and Nasdaq Composite fell 88 points.
- The downward move came after the Institute for Supply Management reported that the U.S. manufacturing sector contracted in August for the first time since 2016, fuelling fears of a potential recession stateside.
- The yield on the benchmark 10-year Treasury note also dropped to a 3-year low on Tuesday following the disappointing manufacturing activity data, falling to 1.441% — its lowest level since July 2016. It was last at 1.4573%.
Market Views
- Asian stocks were mostly higher early Wednesday as a private survey showed China’s services sector activity jumping to a three-month high in August easing fear of an economic slowdown. Hang Seng index jumped 353 points and Nikkei 225 index was up 5 points.
- The Caixin/Markit Services Purchasing Managers’ Index came in at 52.1 in August, its highest since May. Official data for August released over the weekend showed services sector activity picking up for the first time in five months in August.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,197
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. There was a followed-through as price gapped down the next day. We could have seen a possible top. 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 : 25,920
Target price:
Protective stop:
Outlook
Price opened with a gap up today. It is going to test its overhead 20EMA resistance point at 26,010. The 20EMA has capped price rally since August. Price is likely to test its low at 24,941 again if price cannot penetrate above the 20EMA. However, a move above 20EMA would target for 26,520 or 27,000. Stochastic could turn up again in the coming session but MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7647 :
Target price :
Protective stop:
Outlook
Price is still moving within a previous high and previous support point and we expect this movement to continue. 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
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 20,628
Target price:
Protective stop :
Outlook
A shooting star candlestick was formed four days ago, after hitting the resistance zone at 20,820-20,850. Price is attempting to close the gap formed on 2nd Sept. We could see price testing the low at 19,880 again if the gap cannot be closed. Price is likely to range between the resistance zone and support level. Stochastic is rising but has reached its overbought extreme. MACD is still bearish at the moment with both lines below the zero line.
Trading Idea
Wait for better trading idea.
