Market News
- U.S. markets were closed on Friday for the Independence Day holiday. Most markets had gained ground last week as a raft of economic data from June beat expectations, though the resurgence of coronavirus cases in U.S. is clouding the future.
- Amid rising numbers of coronavirus cases in 39 U.S. states, a Reuters tally showed that in the first four days of July alone, 15 states reported record increases in new COVID-19 infections with parties over the holiday weekend possibly leading to another spike.
- Robert Rennie, head of financial market strategy at Westpac expect the markets will have to climb a wall of worry in July as economic activity likely softens from the V-shaped recovery seen over recent months. The relationship between U.S. and China are deteriorating noticeably as well, which should be giving concern.
Market Views
- Asian shares scaled four-month peaks on Monday morning as investors counted on super-cheap liquidity and fiscal stimulus to sustain the global economic recovery, even as surging coronavirus cases delayed re-openings across the U.S. Hang Seng index surged 625 points and Nikkei 225 index rose 306 points.
- Oil prices offered up a mixed market snapshot on Monday, with Brent crude edging higher, supported by tighter supplies, while U.S. benchmark WTI futures dropped on concern that a spike in coronavirus cases could curb oil demand in the United States.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,159
Target price:
Protective stop:
Outlook
This index appears to have found a support ground at the Fibonacci 62% correction point, which is also the previous low support zone. It has rebounded from there and has been rising above the 20EMA. There is a chance for this index to retest its all-time high of 27,608 as long as this support holds. Stochastic is moving up at the moment. MACD is bullish and there is a bullish crossover.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,189
Target price:
Protective stop:
Outlook
This index has finally broken out the consolidation zone that ranged from 23,400 to 25,000 that lasted for almost 3 months. Price closed above the upper end of the boundary and today, we have seen a big gap up and a bullish long candle. As long as today’s gap of 25,340 is not closed, we are likely to see price testing the next resistance zone at 27,140. Stochastic is turning up and MACD is bullish. There is also a bullish MACD crossover.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,489
Target price :
Protective stop:
Outlook
This index rebounded from the 20EMA support, and is now moving higher after a new all-time high of 10,433 was created on Thursday. The next resistance lies at the Fibonacci 127% projection level at 11,300. The 20EMA at 10,055 will be acting as support. 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: Long
Last: 3168
Target price: 3185
Protective stop: 3095
Outlook
This index has been rising after rebounding from the key resistance-turned-support zone, which is also the previous low support since 29 June. There is high chance that price will retest its all-time high of 3232 again. Stochastic is turning up with after bullish crossover at the moment. MACD is bullish and there is a bullish crossover.
Trading Idea
Buy at 3125 for 3185 with stop below 3095 was filled on 3 July 2020.
