Market News
- Nasdaq managed to register its fifth record high close this month on Tuesday, boosted by Apple, Amazon and Microsoft, while the Dow and S&P 500 pared gains late in the session to close below their peaks for the day due to improving economic data and the prospect of more stimulus bolstered hopes of a swift recover.
- Data showed that the pace of contraction in the U.S. manufacturing and services sectors slowed in June as businesses reopened after lockdowns that started in mid-March. Also, new home sales jumped 16.6% in May, blowing past estimates of a 2.9% rise.
- The European Union is prepared to categorize U.S. as the same as Brazil and Russia and to block Americans from entering because U.S. has failed to control the coronavirus pandemic. Several U.S. states seeing record infections and the death toll in Latin America passing 100,000 on Tuesday.
Market Views
- Asian shares were higher on Wednesday morning as investors remained stubbornly upbeat on the outlook for a re-opening of the global economy even as cases of the coronavirus looked to be accelerating to new peaks. Hang Seng index rose 24 points while Nikkei 225 index was up 27 points.
- Oil futures eased from four-month highs after U.S. crude inventories rose a surprisingly large 1.7 million barrels last week, according to industry data. That compares with analysts’ expectations for a 300,000-barrel build. U.S. government data will be released on Wednesday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,130
Target price:
Protective stop:
Outlook
This index has rebounded from the gap support zone, which is also the Fibonacci 50% correction point at 25,200. Do watch out for a Flag breakout at 26,120, for this index to regain its momentum to test 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 : 24,966
Target price: 24,360
Protective stop: 25,150 triggered
Outlook
This index is still moving within the consolidation zone that ranged from 23,400 to 25,000. It is now testing the upper boundary of the range but a failure move to penetrate above 25,380 is likely to bring price fluctuating inside the consolidation zone again. Stochastic could be turning up. MACD is bullish but a bullish crossover was not seen yet.
Trading Idea
Sell 24,800 for 24,360 with a stop above 25,150 was filled on 22 June. Stop was triggered on 24 June 2020.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,226
Target price :
Protective stop:
Outlook
A new all-time high of 10,308 was created last night, backed by the strong gains in technology stocks, but price ended the day with a spinning top candlestick pattern. The 20EMA is still strong and is moving higher, creating the first layer of support to the price at 9850. The next resistance lies at 10,590. Stochastic is moving higher but caution is advised as there could be forming a potential divergence. 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: 3128
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
Buy 3105 for 3185 with a stop below 3060
