- U.S. stocks closed higher on Monday and the S&P 500 was poised to clinch its biggest quarterly percentage gain since 1998 as investors hoped for a stimulus-backed economic rebound, while a surge in Boeing shares helped to boost the blue-chip Dow.
- Boeing shares jumped more than 14% after a 737 MAX took off on Monday from a Seattle-area airport on the first day of certification flight testing with U.S. Federal Aviation Administration and company test pilots, a crucial moment in Boeing’s worst-ever crisis.
- The sting of rising infections was blunted by the pricing of the antiviral drug remdesivir, which has been shown to alter the course of COVID-19, by Gilead Sciences. The company also agreed to send nearly all of its supply of the drug to the United States over the next three months.
- Asian shares rose on Tuesday morning after data showed China’s manufacturing sector grew more than expected in June, a hopeful sign for a global economy still struggling to recover from the sweeping impact of the coronavirus crisis. Hang Seng index rose 195 points and Nikkei 225 index advanced 386 points.
- Data on Monday showed contracts to buy previously owned homes rebounded by the most on record in May, suggesting the housing market was starting to turn around in U.S. Additionally, China’s official PMI released Tuesday showed factory activity in the world’s second-largest economy also grew for a fourth straight month in June.
Dow Jones Index
(CFD Symbol: US30)
Last : 25,673
This index has been falling since 17 Jun and is now going to test the key support at previous low at 24,560. This low also coincided with the Fibonacci 62% correction point. A break of this low would hint for more downside at 22,790 as price could be forming lower highs and lower lows. A move above 25,770 will target 26,800. Stochastic is still moving lower at the moment. MACD is bullish and a bullish crossover is likely.
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short
Last : 24,558
Target price: 23,730
Protective stop: 24,850
Last Wednesday, a bearish Engulfing candlestick price pattern was formed at the upper boundary of the consolidation zone that ranged from 23,400 to 25,000. We expect this index to continue to move within this consolidation range and a test of the low of range boundary at 23,400 is likely. Stochastic is still moving lower at the moment. MACD is bullish but a bullish crossover was not seen yet.
Sell 24,570 for 23,730 with stop above 24,850 was filled on 29 June.
Nasdaq 100 Index
(CFD Symbol: USTec)
Recommendation : Short
Last : 10,017
Target price : 9630
Protective stop: 9960 triggered
This index recorded a new all-time high of 10,308 on last Tuesday, but ended the day with a Spinning Top candlestick pattern. A bearish Engulfing pattern was followed-through last night. We could be at the swing top, and a correction is expected if price breaks below the 20EMA support at 9872. The next support lies at 8905. There is divergence warning given from both Stochastic and MACD. There is a bearish Stochastic crossover. MACD is still bullish but there was a bearish crossover
Sell 9890 for 9630 with a stop above 9960. Stop was triggered on 29 June.
S&P 500 Index
(CFD Symbol: US500)
This index has recorded an all-time high of 3232 on 8 Jun and has been declining since then. It is now hovering around the flat 20EMA, and is approaching the key support of 2936. Let’s see if price can sustain and rebound from this support. A violation of this support could hint for deeper correction. Stochastic is falling at the moment. MACD is bullish and a bullish crossover is likely.
Wait for better trading idea