Market News
- S&P 500 and Nasdaq Composite ended higher on Friday as investors weighed the prospect of more fiscal stimulus against fears of further business disruptions due to a record rise in COVID-19 cases, while a 1.5% drop in Goldman Sachs helped keep the Dow in negative territory.
- Investors are also hoping for more fiscal support as a program that offers additional unemployment benefits is set to expire on July 31. The U.S. Congress will return to Washington on Monday to debate another coronavirus aid bill. The European Union Summit where leaders are also haggling over a plan to revive economies throttled by the COVID-19 pandemic.
- China kept both its one-year and five-year loan prime rate unchanged, as its economy continued to recover after reopening following the coronavirus crisis. Last week, official data showed that its economy grew 3.2% in the second quarter from a year earlier, better than the 2.5% expected by analysts.
Market Views
- Asian shares began cautiously on Monday morning as investors eyed efforts to stitch together more fiscal stimulus in the eurozone and U.S. to help economies ride out the effects of a record jump in COVID-19 cases globally. Hang Seng index fell 48 points and Nikkei 225 index slid 80 points.
- Hong Kong tightened restrictions again after reported cases surged to more than 100 in 24 hours over the weekend. The city’s leader Carrie Lam said the situation was “very serious and there is no sign of it coming under control”.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,531
Target price:
Protective stop:
Outlook
On Wednesday, this index ended the day with a Spinning Top candlestick pattern, followed by a bearish Engulfing on the next day. It violated the gap support that was created on 15 Jul at 26,620. There is chance that price will continue moving lower towards the 20EMA support at 26,180. Stochastic could be turning down and a bearish crossover is likely. MACD is bullish but could be forming a bearish crossover
Trading Idea
Sell 26,600 for 26,180 with a stop above 26,850.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,103
Target price:
Protective stop:
Outlook
This index has violated the gap support that was created on 6 July, which is also the 20EMA support. It is now sitting at the upper end of the blue consolidation zone, which is also the Fibonacci 38% correction point. Price has moved below the falling 20EMA as well. The next support lies at 24,680 and 24,180. Stochastic is turning down at the moment. MACD is still bullish but there was also a bearish MACD crossover.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,591
Target price :
Protective stop:
Outlook
A bearish Engulfing reversal candlestick was seen on 13 July, after this index created a new 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 10,435, we see price moving higher again. Below the 20EMA will likely reverse the bullish trend and send price lower. Stochastic is still strong and could be turning up again. MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3211
Target price:
Protective stop:
Outlook
This index is now hovering around its all-time high resistance at around 3240. A move above 3240 would bring price higher to create another all-time high. The 20EMA is acting as a support at 3158 at the moment. Price could be forming a potential Double Top reversal chart pattern if it breaks below the 20EMA support. Stochastic is turning up again. MACD is bullish and there was a bullish crossover.
Trading Idea
Wait for better trading idea
