Market Views
- Wall Street moved higher on Wednesday, led by tariff-sensitive technology Apple and industrial stocks after China extended an olive branch ahead of next month’s trade negotiations with Washington. S&P 500 index rose and closed above the 3,000 mark for the first time since July 30. Dow Jones index jumped 227 points and Nasdaq Composite index gained 85 points.
- Beijing announced tariff exemptions for a basket of American goods, showing good faith just weeks ahead of planned talks aimed at resolving the trade war. Trump agreed to delay an additional increase in tariffs on Chinese goods by two weeks as a gesture of good will thereafter.
- U.S. President Donald Trump tweeted on Wednesday that increased tariffs on 250 billion dollars’ worth of Chinese goods that were set to kick in on October 1 have now been delayed to October 15 “as a gesture of good will.” and in consideration of the 70th anniversary celebrations of the People’s Republic of China
Market Views
- Asian stocks were mixed on Thursday morning on hopes for a thaw in U.S.-China trade friction and expectations that the European Central Bank will kick off another wave of monetary easing by global central banks. Nikkei 225 index was up 180 points while Hang Seng index slipped 70 points.
- OPEC’s decision on Wednesday to cut its forecast for global oil demand in 2020 will be the focus for the investors. Trump is considering easing sanctions on Iran, which could potentially boost oil supplies.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,259
Target price:
Protective stop:
Outlook
Since price moved and closed above the mid-June low resistance level which is also near to the Fibonacci 62% retracement point with a bullish long green candlestick on Thursday night, price has been moving higher. We see the index heading up to test its high at 27,400 again. However, the upward momentum is weakening. Stochastic is still rising and MACD has turned bullish with both its lines above the zero line. Both momentum indicators are still hinting of further price rally.
Trading Idea
Wait for pullback to enter.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,087
Target price:
Protective stop:
Outlook
The index has been trying to close the gap that formed on 2 August after breaking above 20EMA. Price is now near to Fibonacci 62% resistance point, which is also the gap resistance. Price could be forming a potential Dark Cloud Cover candlestick pattern. This could be the end of the rally if price break below yesterday’s low and price could retrace to 20EMA at 26,450. Stochastic is in the overbought region and could turn down. MACD has turned bullish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7931
Target price :
Protective stop:
Outlook
This index broke and closed above 7780 last Thursday night and has been moving higher since. There was a price correction for the past four days and price dipped below the 7780 breakout point. However, price rebounded from this point last night. Stochastic has turned up again. Price could be testing its high at 8035 again. MACD is bullish at the moment. Both momentum indicators are hinting of further price advance.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,797
Target price:
Protective stop :
Outlook
Price hit its previous peak at 21,831 today. This is the third time of the index testing this level. Do watch out for the price reaction at this level. The index could be forming a triple top chart pattern if price could not break above this level, and we could see price retracing back to 21,040-21,085. A move above the resistance would target for Fibonacci 127% projection level at 22,350. Stochastic is at the overbought region and could turn down but MACD is still strong and bullish at the moment.
Trading Idea
Wait for better trading idea.
