Market News
- U.S. stocks finished mostly higher on Friday after Trump announced he would be taking action to eliminate special treatment for Hong Kong, following China’s approval of a controversial national security bill for the city. US indices managed to recover as Trump’s policy decision did not broadened into US-China trade deal.
- Trump said China broke its word over Hong Kong’s autonomy but did not mention any action that would undermine the Phase 1 trade deal that Washington and Beijing signed this year. Limited sanctions give US equity market some relief.
- Protests in U.S. turned violent in places including New York and Chicago following the death in Minneapolis of a black man, George Floyd, seen on video gasping for breath as a white police officer knelt on his neck.
Market Views
- Stocks in Asia Pacific were higher in Monday morning trade as a Chinese data release over the weekend showed the country’s factory activity expanding in May and eased worries of an economic slowdown in China. Hang Seng index surged 766 points and Nikkei 225 index rose 257 points.
- Data released over the weekend by China’s National Bureau of Statistics showed factory activity in the country expanding in May, with the official manufacturing Purchasing Manager’s Index (PMI) coming in at 50.6. Caixin PMI this morning confirms the official data over the weekend.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,437
Target price:
Protective stop:
Outlook
This index is hovering inside the gap resistance the zone that ranged from 25,220 to 25,800. It could also be consolidating within a Pennant chart pattern right now. We would like to see a Pennant breakout to be followed by price breakthrough of the gap resistance zone for further upside towards 27,000. If this index is unable to move above the gap resistance zone, we could expect a correction to follow and a decline to 23,262. Stochastic could be turning down. MACD is bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,801
Target price:
Protective stop:
Outlook
A rising window was created this morning and we have seen price rebounded inside the consolidation zone that ranged from 23,400 to 25,000. We could see price moving towards the upper end of the consolidation zone to 24,800 if price close firm above 23,400. Stochastic is turning up at the moment. MACD is bearish but a bullish crossover is likely.
Trading Idea
Buy 23,500 for 24,800 with a stop below 23,100
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9549
Target price :
Protective stop:
Outlook
Price has been rising along with the rising 20EMA which is acting as first layer of support to price. It has to penetrate above 9600 in order to move to its all-time high at 9753. However, there are divergence warnings given from both the Stochastic and the MACD. Stochastic is already inside the overbought zone. MACD is still bullish but is flat at the moment. Beware of a reversal in trend.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 22,045
Target price:
Protective stop:
Outlook
This index has been rising after breaking above the gap resistance at 20,440 and the Fibonacci 62% correction point that came in at 20,730. The next resistance lies at the next gap resistance that ranged from 23,000 to 23,220. Stochastic is still rising at the moment. MACD is also bullish. 20EMA is also rising and hinting of a bullish uptrend.
Trading Idea
Wait for better trading idea.
