- Wall Street surged on Tuesday, with the Dow Jones ending more than 2% higher as investors bought energy and materials stocks and looked beyond a recent rise in coronavirus cases. S&P 500 rose 1.3% and Nasdaq Composite gained 0.9%.
- New data showed U.S. consumer prices rebounded by the most in nearly eight years in June, but resurgence in new COVID-19 cases after the reopening of businesses suggested weak demand could keep the Federal Reserve injecting money into an ailing economy.
- Simmering tensions between the United States and China also loom large, after U.S. President Trump signed legislation and an executive order to hold China “accountable” for the national security law it imposed on Hong Kong.
- Stocks in Asia mostly traded higher Wednesday morning as hopes for a coronavirus vaccine rise, but the tensions between U.S. and China will be closely watched as well. Nikkei 225 index advanced 304 points and Hang Seng index was up 217 points.
- The Bank of Japan is expected to hold steady on policy after Wednesday meeting, but investors will be gauging officials’ economic projections and any reassurances of additional stimulus if needed.
Dow Jones Index
(CFD Symbol: US30)
Last : 26,874
This index has been moving higher after rebounding from the key support zone, which coincides with the Fibonacci 62% correction point. It was supported and rebounded from the 20EMA support. A rising window was created today, and as long as today’s gap is not closed, we are likely to see price moving higher to test its all-time high at 27,608. Stochastic is moving up at the moment. MACD is bullish and there is a bullish crossover.
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long
Last : 26,570
Target price: 26,570
Protective stop: 25,230
This index is now testing the key gap support that created on 6 Jul, which is also the 20EMA support. As long as this support is not violated, there is possibility for this index to move higher again. A close below this gap support will likely to bring price lower. Stochastic is turning down at the moment. MACD is still bullish and there is also a bearish MACD crossover.
Buy at 25,630 for 26,570 with a stop below 25,230. Order was filled on 10 July.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 10,691
Target price :
A bearish engulfing reversal candlestick was seen on 13 July, after creating an all-time high at 11,071. Price is now supported by the rising 20EMA which is acting as first layer of support at the moment. As long as price stay above 20EMA at 10,378, we could see price moving higher again. Below the 20EMA will likely change the bullish trend and to bring price lower. Stochastic is now at the overbought region and is falling. MACD is still bullish, but a bearish crossover could be likely.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
This index tested its previous all-time high resistance and created a new all-time high at 3235 on Monday. The 20EMA is acting as a support at 3138 at the moment. Price could be forming a potential Double Top reversal chart pattern if it breaks below the 20EMA support. There is also divergence warning given from both Stochastic and MACD. Stochastic is now turning down. MACD is bullish and there was a bullish crossover.
Wait for better trading idea