Market News
- U.S. stocks closed lower on Tuesday, with the S&P 500 and Dow snapping a seven-day streak of gains and falling late in the session on growing uncertainty about breaking a stalemate in Washington over a fiscal stimulus deal.
- The day’s declines followed comments from U.S. Senate Republican leader Mitch McConnell, who told Fox News that White House negotiators had not spoken on Tuesday with Democratic leaders in the U.S. Congress on coronavirus aid legislation after talks broke down last week.
- New Zealand opened the region on a grim note after the Pacific nation reported its first coronavirus infections in more than 100 days, and their Prime Minister Jacinda Ardern announced she was re-locking down Auckland after four new cases of COVID-19 were discovered in the city.
Market Views
- Asian stocks were set for choppy trade on Wednesday morning after Wall Street dipped amid growing uncertainty about an additional round of U.S. fiscal stimulus. Nikkei 225 index was up 38 points while Hang Seng index slid 42 points.
- Gold prices fell more than 5% overnight, the worst one-day decline in seven years as investors’ risk appetite returned, boosting the U.S. stocks. Spot gold tumbled as much as 5.51% to $1,927.30 per ounce, down sharply from Friday’s record intraday high of $2,089.20.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,752
Target price:
Protective stop:
Outlook
This index has continued its upward momentum and has been rising higher after breaking out from the triangle pattern that started since 20 Jun. The 20EMA is rising at the moment, confirming the bullish trend, and also acting as the first layer of support at the moment at 26,980. The triangle target lies at 29,490. Stochastic is at the overbought region and could be turning down. MACD is also bullish at the moment.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,872
Target price:
Protective stop:
Outlook
Price rebounded from its previous low support two days ago, and is now testing the 20EMA resistance point. There is a divergence warning given from the MACD that hint for potential reversal. This index has to penetrate above 25,330 in order to move higher. A violation of 24,240 would bring price lower towards 23,510. Stochastic is still moving up. MACD is bearish but had a bullish crossover.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 10,917
Target price :
Protective stop:
Outlook
There was a price correction that brought price lower to test its first 20EMA support at 10,860 from its all-time high of 11,291. We see a rebound at this point for a test of its high again. A break of this support zone will hint for deeper correction at 10,310. Stochastic is falling at the moment. MACD is bullish but had a bearish crossover, and could have formed a potential divergence warning.
Trading Idea
Buy 10,910 with a stop below 10,780 for 11,250
Australian 200 Index
(CFD Symbol: AUS200)
Trend:
Recommendation:
Last: 6157
Target price:
Protective stop:
Outlook
This index has been moving within a triangle pattern since early Jun. It is now trading near its upper end of the triangle resistance at 6247. We expect price to continue its consolidation until either end of the triangle is broken. Price has to surpass this level for a breakout and for an upside at 6555, else, we are likely to see price moving lower towards 5950. Stochastic is moving up at the moment and MACD is bullish.
Trading Idea
Wait for better trading idea
