Market News
- On Wednesday, both the S&P 500 and Nasdaq closed higher to kick off the third quarter as increasing optimism for a safe and effective COVID-19 vaccine eased concerns that another round of business lockdowns was likely. Dow Jones fell 77 point, dragged down by the Boeing.
- Pfizer was among the top boosts, rising more than 3% after the drug maker said a COVID-19 vaccine being developed with German biotech firm BioNTech showed promise and was found to be well-tolerated in early-stage human trials.
- Investors were also encouraged by some upbeat economic data as coronavirus-induced lockdowns have eased. A report on Wednesday showed a slump in global manufacturing had ebbed in June, with U.S. figures hitting their highest level in more than a year.
Market Views
- Asian stocks were set to track Wall Street gains on Thursday morning as investors cheered signs the global economy was emerging from its coronavirus hibernation although trade is likely to be choppy as fresh concerns about Hong Kong keep investors cautious. Hang Seng index rose 389 points and Nikkei 225 index gained 98 points.
- More than 300 people protesting sweeping new laws introduced by China to snuff out dissent was arrested in Hong Kong. The U.S. House of Representatives also passed legislation on Wednesday that would penalize banks doing business with Chinese officials who implement a national security law.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,749
Target price:
Protective stop:
Outlook
This index has been falling since 17 Jun and has tested the key support at previous low at 24,560, which coincided with the Fibonacci 62% correction point. Price rebounded from 24,560 and if price can sustain above this support, a move to 25,770 is likely. A violation of 24,560 low would hint for more downside to 22,790. Stochastic is moving up. MACD is bullish and a bullish crossover is likely.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 24,878
Target price: 23,730
Protective stop: 24,850 triggered
Outlook
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. Watch out for either end to break for directional movement. Stochastic could be turning up. MACD is bullish but a bullish crossover was not seen yet.
Trading Idea
Sell 24,570 for 23,730 with stop above 24,850 was filled on 29 June. Stop was triggered on 1 July.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,302
Target price :
Protective stop:
Outlook
This index rebounded from the 20EMA support again, and is now moving higher and a new all-time high of 10,322 was created last night. The next resistance lies at the Fibonacci 127% projection level at 11,300. The 20EMA will be acting as support at 9969. Stochastic has turned up again and a bullish crossover was seen. MACD is still bullish and there is also a bullish crossover.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3116
Target price:
Protective stop:
Outlook
This index has recorded an all-time high of 3232 on 8 Jun and has been declining since then. It has rebounded near the key support of 2936. As long as price can hold at this support at 2995, price could retest its all-time high of 3232 again. A violation of this support at 2995 could hint of a deeper correction. Stochastic could be turning up. MACD is bullish and there is a bullish crossover.
Trading Idea
Buy at 3110 for 3185 with stop below 3060
