Market News
- U.S. markets fell on Tuesday as investors fretted about weakening consumer confidence, disappointing financial results and as investors worried about wrangling in the U.S. Congress over a coronavirus aid plan. Dow Jones slid 205 points, S&P 500 was down 20 points and Nasdaq Composite lost 134 points.
- Data released on Tuesday showed U.S. consumer confidence ebbed in July as coronavirus infections flared up across the country. Investors were anticipating the U.S. Federal Reserve’s Wednesday wrap-up of its two day policy meeting.
- U.S. President Trump said on Tuesday he did not support everything in a $1 trillion Senate Republican coronavirus relief proposal the day after it was unveiled by Majority Leader Mitch McConnell, although he indicated talks were continuing.
Market Views
- Asian markets were mixed on Wednesday morning as an impasse in U.S. economic stimulus negotiations pushed global stocks lower and sent investors into safe-haven assets like gold, which hovered near record highs. Hang Seng index rose 60 points while Nikkei 225 index fell 178 points.
- Worsening coronavirus outbreaks in Florida and Texas added to the caution. Florida reported 191 deaths in a 24 hour period ending on Tuesday, marking a record one-day rise for the third-most populous U.S. state and prized destination for beach-goers and retirees.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,374
Target price:
Protective stop:
Outlook
Price could be consolidating within a triangle pattern since Jun 20. It was capped by upper boundary of the triangle resistance, which is also the potential Double Top reversal pattern. It is now testing the first layer of the 20EMA support, and a violation of this support would target for the lower boundary at 25,720. Stochastic is turning down but MACD is still bullish but there was a bearish crossover.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 24,828
Target price: 24,180
Protective stop: 25,250
Outlook
This index is now hovering at the edge of the key blue consolidation zone, which is also the Fibonacci 50% correction point. A violation of this support would bring price lower towards 24,180. The 20EMA is falling at the moment, which could suggest more downside. Stochastic is at the oversold region and could be turning up. MACD is bullish and a bullish crossover is likely.
Trading Idea
Sell 24,950 with a stop above 25,250 for 24,180. Order was filled on 29 July.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,570
Target price :
Protective stop:
Outlook
Last Tuesday, price hit exactly 11,071, which was the previous all-time high, and has been moving lower since then. It is currently hovering around the 20EMA support at 10,550. If price can sustain at the 20EMA, we are likely to see price testing its high again. Below the 20EMA would hint of a deeper correction as there are divergence warnings given from both the Stochastic and MACD. Stochastic is now moving lower but MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 22,489
Target price:
Protective stop
Outlook
This index could be consolidating within a triangle pattern after being resisted by its previous gap resistance that formed on 24th Feb. The 20EMA is now flat, confirming the consolidation. Price could move lower towards the gap support at 21,010 if it breaks below the lower boundary of the triangle. Price has to break above the upper boundary of the triangle to move higher. Stochastic is moving lower at the moment but MACD is still bullish.
Trading Idea
Wait for better trading idea
