Market News
- Wall Street’s three major indexes closed higher on Monday with the biggest gains in technology stocks such as Microsoft, Apple and Amazon as investors focused on the potential for more government stimulus measures even as they worried about an increase in coronavirus cases in U.S. and other countries.
- While New York City on Monday celebrated the lifting of many coronavirus restrictions, a dozen states in the U.S. South and Southwest reported record increases in new cases with 10% to 20% of people testing positive in some. However White House economic adviser Larry Kudlow said there is no second wave coming and that lawmakers will likely develop another stimulus package by the end of next month.
- U.S. home sales dropped to their lowest level in more than 9-1/2 years in May, strengthening expectations for a sharp contraction in housing market activity in the second quarter following disruptions caused by the COVID-19 pandemic.
Market Views
- Asian stocks were set to edge up on Tuesday morning after oil prices rose and technology firms pushed Wall Street higher, although investors remained worried about fresh coronavirus outbreaks across the globe. Hang Seng index rose 66 points and Nikkei 225 index gained 114 points.
- Stock futures recovered earlier losses after White House trade advisor Peter Navarro clarified that the U.S.-China trade deal is not over. He said they had nothing at all to do with the Phase I trade deal, which continues in place.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,091
Target price:
Protective stop:
Outlook
This index could be forming a potential Flag pattern, and price appears to rebound from the gap support zone, which is also the Fibonacci 50% correction point at 25,200. Let’s see it price can breakout from this Flag to continue its upward momentum towards its all-time high at 27,608. The support point of 24,560 is crucial, and if price breaks below this support, we could see this index declining to 22,787 again. Stochastic could be turning up. MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,733
Target price: 24,360
Protective stop: 25,150
Outlook
Price has fallen inside the consolidation zone that ranged from 23,400 to 25,000 and we expect this index to move within this range, until either end of the range boundary is broken for the next directional move. The 20EMA is currently flat, suggesting that price is moving in sideways manner. Stochastic could be turning up. MACD is bullish but a bearish crossover was seen.
Trading Idea
Sell 24,800 for 24,360 with a stop above 25,150 was filled on 22 June.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,127
Target price :
Protective stop:
Outlook
The three days’ price decline was halted when this index hit the 20EMA, where it had provided support to the price. A bullish engulfing pattern was formed on last Monday, suggesting a potential bottom. We are likely to see this index tests its all-time high at 10,155. The next resistance lies at 10,590. A decline below 9384 would indicate a top and further decline to 9000. Stochastic is turning up. MACD is still bullish but a bullish crossover was not seen yet.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3123
Target price:
Protective stop:
Outlook
This index rebounded from the key resistance-turned-support zone after forming a bullish engulfing reversal pattern. It could be consolidating within a Flag pattern, and the 20EMA is acting as support to the price. A Flag breakout would target for the all-time high at 3232. Stochastic is turning up. MACD is bullish but a bullish crossover was not seen yet.
Trading Idea
Wait for better trading idea
