Market News
- Dow and S&P 500 both moved between gains and losses, ending a choppy session lower on Wednesday after the Federal Reserve reassured investors of its support for the economy but projected a 6.5% decline in gross domestic product this year and an unemployment rate at 9.3%.
- Fed pledged to keep monetary policy loose until the U.S. economy is back on track repeats a promise made early in the central bank’s response to the coronavirus pandemic. They also forecast a 9.3% unemployment rate at year’s end, and flag the need to keep the key interest rate near zero through at least 2022.
- Nasdaq, continued its record-breaking rally for the third consecutive session helped by gains in shares of Microsoft and Apple, with investors viewing technology as a defensive sector with massive growth opportunities.
Market Views
- Stocks in Asia Pacific were lower on Thursday morning after gloomy economic projections from the U.S. Federal Reserve sent the greenback and most Wall Street indices and stocks lower. Nikkei 225 index fell 242 points and Hang Seng index slid 157 points.
- U.S. Treasury yields fell as the Fed promised to maintain monthly bond purchases at “the current pace” of about $80 billion in Treasuries and $40 billion in agency and mortgage-backed securities.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,656
Target price:
Protective stop:
Outlook
There was a Bearish Harami reversal candlestick that was confirmed by a follow-through bearish candle last night. This index is likely to have a price correction after its pennant breakout’s rally. The strong support lies at 25,820, is which constituted by the 20EMA, Fibonacci 38% correction point and the gap support. Watch out for the price reaction at this support zone for further directional hints. Stochastic is falling from the overbought region. MACD is bullish but a bearish crossover is likely.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long
Last : 24,851
Target price: 25,750
Protective stop: 24,800
Outlook
Price struggled to stay above the upper end of the consolidation zone that ranged from 23,400 to 25,000 for the past four days, and it seems like price could be falling back inside the consolidation zone again. If so, it could move lower to the lower end of the consolidation range at 23,400 again. Stochastic could be turning down. MACD is bearish but a bullish crossover was seen.
Trading Idea
Buy at 25,100 for 25.750 with a stop below 24,800 was filled on 10 June
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,027
Target price :
Protective stop:
Outlook
This index has created a new intraday all-time high at 10,155 last night after breaking out from the Rising Wedge chart pattern. The next potential upside lies at 10,590. The 20EMA that coincides with the lower trendline is acting as support at 9610. 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: 22,636
Target price:
Protective stop
Outlook
This index was resisted by the gap resistance that created on 24th Feb for the past few days. It has to penetrate above this gap resistance zone at 23,320 for further upside. Otherwise, price is likely to move lower towards its first 20EMA support at 21,970. The next strong support comes in at 20,440, the gap support that coincides with the Fibonacci 38% correction point, once the 20EMA support is violated. Stochastic is moving lower a bearish MACD crossover is likely.
Trading Idea
Sell 22,650 for 22,010 with a stop above 23,350.
