Market News
- Dow Jones and S&P 500 slipped from record levels on Tuesday as dour forecasts from retailers Home Depot and Kohl’s fuelled worries about consumer spending and the U.S.-China trade dispute dragged on. Nasdaq Composite had a slight gain of 20 points.
- Trump on Tuesday threatened to escalate the trade war by raising tariffs on Chinese imports if no deal is reached with China, despite saying talks were “moving along fine”
- The minutes from Fed’s latest monetary policy meeting that will release on Wednesday will also be one of the focus points, in which it cut interest rates for the third time this year but signalled it may be done with rate easing for now.
Market Views
- Asian shares lumbered lower on Wednesday morning as the Sino-U.S. trade talks produced nothing but a stream of conflicting messages; while concerns about a glut of supply saw oil prices suffer their biggest spill in seven weeks. Hang Seng index fell 171 points and Nikkei 225 index declined 173 points.
- Figures from the American Petroleum Institute out late Tuesday showed a far larger rise in crude stocks than expected. That followed reports Russia was unlikely to deepen its cuts to crude output.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,867
Target price:
Protective stop:
Outlook
The index made a new historical high at 28,161 last night, but closed near its day’s low. Price is now moving lower to test the 10EMA. We could see a possible price correction to test the upper trendline support at 27,235, which is also the Fibonacci 38% retracement point, if price breaks below the 10EMA. MACD is strong and bullish at the moment, but a bearish crossover is likely in the coming session, hinting at potential downward price movement. Stochastic is in the overbought extreme and could move down.
Trading Idea
Sell 27,950 for 27,235 with stop above 28,170.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,943
Target price:
Protective stop:
Outlook
Price reached the Fibonacci 50% retracement point at 26,192, and has bounced up strongly. Price is now testing the overhead 20EMA and gap resistance at 26,903-26,967. The index needs to move above this level to advance higher. A failure move above this level is likely to bring price lower to test its low again at 25,540. Stochastic is moving towards its oversold extreme and is turning up. MACD is still bullish at the moment and the fast line is turning up as well.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8303
Target price :
Protective stop:
Outlook
The index made a new all-time high of 8374 again last night and has remained in a rising channel and above the breakout level since end-August. The next resistance lies at 8492. Price is now trading near the 10EMA and the lower channel. The index will only turn bearish if it moves below the channel or the 10EMA. A move below the channel would target for the breakout level at 8034. Stochastic is in its overbought extreme. MACD is strong and bullish but there is divergence warning given along the way, and a bearish crossover was seen
Trading Idea
Wait for better trading idea
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6771
Target price:
Protective stop :
Outlook
Price was resisted for the fifth time at its recent high resistance that ranged from 6834 to 6848. A long shooting star candlestick pattern was formed yesterday, and price is forming a follow-through bearish candlestick today. Price is heading downwards towards the 50EMA support at 6738. A move below 50EMA would target 6616. Stochastic is moving down. MACD is still bullish at the moment but is losing momentum as the histogram is relatively short. There is also a bearish MACD crossover.
Trading Idea
Wait for better trading idea.
