Market News
- Last night, stocks held their ground in the face of Middle East uncertainty, the spectacular crash of an IPO and what the Federal Reserve will do with interest rates on Wednesday. Dow Jones and Nasdaq Composite closed 32 points higher, while S&P 500 rose 7 points.
- Oil prices fell last night after Saudi Arabia’s energy minister said the Kingdom will restore lost oil production by the end of this month. The tension in the Middle East remained high after Washington said they believed Iran was the culprit for the attacks, while Iran has denied any involvement in the strikes.
- High-level officials from Beijing and Washington will meet in mid-October to continue trade talks. Trump told reporters on Tuesday that they could reach a trade deal with Beijing before the U.S. presidential election as he warned China that a deal after the election would be far worse than what it is right now.
Market Views
- Stocks in Asia opened higher as investors awaited the outcome of Fed’s policy meeting, where it is widely expected to cut interest rates by 25 basis points again. Nikkei 225 was up 11 points while Hang Seng index declined by 11 points.
- Fed started a two-day meeting on interest rates and they are going to announce their decision at 2am Singapore time on Thursday. This would be the central bank’s second reduction this year if expected with a 25 basis points.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,090
Target price:
Protective stop:
Outlook
Last Friday, price reached almost the previous all-time high after moving above the mid-June low resistance level which is also near to the Fibonacci 62% retracement point. However, price gapped lower on Monday and there were indecisive Doji candlesticks for the past two days. Price may test the 20EMA support at 26,540 if the gap cannot be closed. Price will need to move above 27,170 to be bullish again. Stochastic has turned down but MACD is bullish at the moment.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,834
Target price:
Protective stop:
Outlook
The index has been trying to close the gap that formed on 2 August but price was capped by Fibonacci 62% resistance point, which is also the upper gap resistance. This could be the end of the rally if price cannot break through this resistance and price could retrace to 20EMA at 26,630. A break below the 20EMA would likely lead to a test of 25,500. Stochastic is in the overbought region and has turned down. MACD is bullish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7878
Target price :
Protective stop:
Outlook
This index broke and closed above 7780 on 5 Sep and has been moving higher since. However, a Shooting Star candlestick pattern was formed last Thursday night, raising concern that we could have reached a top. Price has since been consolidating around this range from 7780 to 7970. A move below 7780 could see a correction to 7660. Price will need to move above 7976 to be bullish again. Stochastic has turned down but MACD is bullish at the moment.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 22,030
Target price:
Protective stop :
Outlook
Price broke above its previous peak of 21,831 and managed to stay above this level for the past three days. This level is now become the resistance-turned-support level. As long as price stay above this level, price is likely to test the Fibonacci 127% projection level at 22,350. Stochastic is at the overbought region but still look strong at the moment. MACD has turned bullish and is rising.
Trading Idea
Wait for better trading idea.
