Market News
- The blue-chip Dow surged 527 points on Wednesday, contributed mainly by Boeing as its shares rose 12.9% following news that billionaire investor Daniel Loeb’s Third Point had taken a stake in the company. S&P 500 posted their fourth straight day of solid gains as well.
- Nasdaq is also approaching its record highs as signs of an economic recovery from mandated shutdowns helped investors look beyond U.S. social unrest and pandemic worries. There is growing confidence that the U.S. economy can safely re-open, much as other economies such as China and Italy have successfully done.
- Employment report from ADP showed private payrolls stateside falling by 2.76 million in May — much less than the 8.75 million expected from economists surveyed by Dow Jones.
Market Views
- Stocks in Asia were mixed in Thursday morning trade as optimism over the economic recovery from the coronavirus pandemic continued to keep investor sentiment afloat. Wall Street’s gains also lifted Asian market. Hang Seng index fell 39 points and Nikkei 225 index rose 17 points.
- A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, reached 55 basis points on Wednesday, the steepest level since mid-March. A steepening curve often points to a stronger economy.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,208
Target price:
Protective stop:
Outlook
This index managed to breakthrough the gap resistance zone that ranged from 25,220 to 25,800 last night after breaking out from the Pennant pattern. Price could be continuing to move higher towards the next upside at 27,000. The 20EMA is still rising at the moment, confirming the bullish trend. Stochastic is at the overbought region but MACD is bullish.
Trading Idea
Buy 26,100 for 26,900 with stop below 25,800
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,355
Target price:
Protective stop:
Outlook
Price hit the upper end of the consolidation zone that ranged from 23,400 to 25,000 yesterday again, and today, we see a bearish candlestick moving lower again. This index will need to move above 25,000 to be bullish; otherwise, we are likely to see it testing the lower end of the consolidation range at 23,400 again. Stochastic is turning up at the moment. MACD is bearish but a bullish crossover was seen.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9668
Target price :
Protective stop:
Outlook
Price broke above the price resistance high of 9600 two nights ago and is approaching to its all-time high resistance at 9753. It has to surpass 9753 for more upside. Price could be forming a Rising Wedge chart pattern. Caution is advised as Stochastic is already in overbought extreme. MACD is still bullish but is flat at the moment.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 22,640
Target price:
Protective stop:
Outlook
This index is currently trading near to its gap resistance that ranged from 23,000 to 23,220. Do watch out for the close of today as there is a bearish candlestick that is in the formation. We could see a correction to the 20EMA at 21,340 if this index closes with a bearish engulfing today. Price has to breakthrough the gap resistance for 24,000. Stochastic is at the overbought region. MACD is also bullish.
Trading Idea
Wait for better trading idea.
