CFD Indices – USTec Made A New Historical High

Market News

  • On Friday, Nasdaq breached its all-time closing high reached in February but pared its gains to end the session a hair’s breadth below it. All three major indexes advanced 2% or more after a strikingly upbeat May jobs report unexpectedly provided the clearest evidence yet that the U.S. economy is headed for a quicker-than-anticipated recovery.
  • The U.S. economy added a remarkable 2.5 million jobs last month, rebounding from April’s record 20.7 million drop and pushing the unemployment rate down to 13.3%. Analysts had predicted unemployment soaring to a historic 19.8%.
  • Boeing surged 11.5%, giving biggest the blue-chip Dow its biggest boost, on hopes of a pickup in air travel a day after American Airlines Group Inc and United Airlines said they would boost their U.S. flight schedule next month.

Market Views

  • Asian shares advanced on Monday morning after a surprise recovery in U.S. employment gave further confidence of a quick economic recovery after many weeks of lockdowns aimed at controlling the coronavirus pandemic. Nikkei 225 index rose 212 points and Hang Seng index gained 139 points.
  • OPEC, Russia and allies agreed on Saturday to extend record oil production cuts until the end of July, prolonging a deal that has helped crude prices double in the past two months by withdrawing almost 10% of global supplies from the market.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,152
Target price: 26,900 reached
Protective stop: 25,800

Outlook
This index managed to break through the gap resistance zone that ranged from 25,220 to 25,800 on Wednesday after breaking out from the Pennant pattern. The next resistance comes in at 28,380. 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 was filled on 4 June 2020


Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,921
Target price:
Protective stop:

Outlook
Price closed slightly above the upper end of the consolidation zone that ranged from 23,400 to 25,000 on Friday. We would like to see this index close above 25,210 to confirm the breakout and a bullish trend. If this index can go above 25,210, we see this index testing the overhead gap resistance at 25,780. Otherwise, price could move lower to 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 : 9847
Target price :
Protective stop:

Outlook
This index has created a new all-time high at 9846 on Friday, but price is still moving within the Rising Wedge chart pattern. This pattern is a reversal chart pattern. We would like to see a chart pattern breakout for further upside towards 10,410. The 20EMA that coincides with the lower trendline is acting as support at 9538. 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.


S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3197
Target price:
Protective stop:

Outlook
This index has been rising along with the rising 20EMA which is acting as support to the price rally after breaking above the Flag pattern and also the gap resistance at 2965. The next resistance lies at 3397 and we see this index rising to the next resistance. Stochastic is at the overbought region and MACD is bullish at the moment.

Trading Idea
Buy at 3130 for 3240 with stop below 3070

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