Market News
- U.S. stocks rose sharply on Monday as a rebound in U.S. services industry activity in June and expectations of a revival in China’s economy boosted optimism, helping investors look past a surge in new coronavirus cases in U.S. Online retail giant Amazon crossed $3,000 for the first time, provided the biggest boost to the S&P 500 and the Nasdaq.
- The Institute for Supply Management’s (ISM) non-manufacturing activity index almost returned to its pre-COVID-19 pandemic levels last month, jumping to a reading of 57.1, the highest since February, from 45.4 in May, which helped to explain the increase in consumer confidence.
- The Reserve Bank of Australia is expected to hold its cash rate at 0.25% and make no changes to policy at Tuesday’s board meeting, leaving markets to focus on the accompanying statement. Ray Attrill, head of foreign exchange strategy at National Australia Bank wrote in a note that even in its best-case upside scenario, full economic recovery will take years.
Market Views
- Markets in Asia Pacific were mixed on Tuesday morning as investors weighed growing expectations of an economic rebound in China and a resurgent U.S. services industry, while waiting for the Reserve Bank of Australia’s interest rate decision. Hang Seng index rose 3 points while Nikkei 225 index slid 126 points.
- Bullish sentiment toward the Chinese economy propelled the yuan on Monday to its best day against the dollar since December, while an index of blue-chip Chinese shares soared to its highest in five years. Jawboning by the Chinese government through a state-sponsored journal on the importance of “fostering a healthy bull market” helped spur the move.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,231
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 : 26,428
Target price:
Protective stop:
Outlook
This index has finally broken out of the consolidation zone that ranged from 23,400 to 25,000 that lasted for almost 3 months. On Monday, price closed above the upper end of the boundary with a big gap up and a bullish long candle. As long as Monday’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 : 10,621
Target price :
Protective stop:
Outlook
This index created a new all-time high at 10,624 last night after rebounding from the 20EMA support. The next resistance lies at the Fibonacci 127% projection level at 11,300. The 20EMA at 10,120 will be acting as support. Stochastic has turned up again and is now at the overbought region. 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: 3175
Target price: 3185 triggered
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. Profit order was fill on 7 July.
