Market News
- S&P 500 ended nearly flat on Friday despite coming close again to its record closing high, as data on the U.S. economy added to uncertainty over the recovery. Dow Jones slightly rose 34 points while Nasdaq Composite closed 23 points lower.
- Data on Friday showed U.S. retail sales increased less than expected last month and could slow further due to spiralling COVID-19 cases and a reduction in unemployment benefit checks. U.S. factory output increased more than expected in July but remained below pre-pandemic levels while consumer sentiment was largely steady in the first half of August.
- Sino-U.S. relations remain a sticking point with U.S. President Donald Trump on Saturday saying he could exert pressure on more Chinese companies such as technology giant Alibaba after he moved to ban TikTok.
Market Views
- Asian shares firmed toward recent peaks on Monday morning as Chinese markets swung higher, while investors waited to see if the recent sell-off in longer-dated U.S. Treasuries would extend and maybe take some pressure off the beleaguered dollar. Hang Seng index rose 306 points and Nikkei 225 index slid 144 points.
- Japan was hit by its biggest economic contraction on record in the second quarter as the coronavirus pandemic crushed consumption and exports, keeping policymakers under pressure for bolder action to prevent a deeper recession.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,971
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 27,240. The triangle target lies at 29,490. Stochastic is at the overbought region but is still strong at the moment. MACD is also bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,545
Target price:
Protective stop:
Outlook
Price rebounded from its previous low support last Monday, and has broken above the 20EMA resistance point. There is a divergence warning given from the MACD that hint of a potential reversal. We would like to see a firm close above 25,330 for price to move higher towards 26,270. Stochastic is still moving up. MACD is bearish but had a bullish crossover.
Trading Idea
Buy 25,500 with stop below 25,000 for 26,150.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation : Long
Last : 11,207
Target price : 11,250 Filled
Protective stop: 10,780
Outlook
This index has been rising steadily along with the rising 20EMA which is acting as support at the moment. We would like to see price penetrate above its all-time high of 11,291 for more upside towards 11,550. A break of the 20EMA would hint for a price correction. Stochastic is still strong and is rising at the moment. MACD is bullish but had a bearish crossover.
Trading Idea
Buy 10,910 with a stop below 10,780 for 11,250. Buy order was filled on 12 Aug. Profit target was filled on 14 Aug
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3376
Target price:
Protective stop:
Outlook
This index has been rising to a new all-time high of 3387 on Wednesday. Price was capped by this high for four consecutive days. Price needs to penetrate above this high for further upside to 3416. The 20EMA is still rising at the moment, and is providing support at 3308. Stochastic is falling but is still strong at the moment. MACD is bullish, but could be forming a divergence warning.
Trading Idea
Wait for better trading idea
