Market News
- Nasdaq ended at a record high on Thursday, with the S&P 500 and Dow also rising, as gains in heavyweight technology stocks outweighed downbeat data that affirmed the Federal Reserve’s view of a difficult road to economic recovery.
- The volatility in jobless claims followed the lapse of an extra $600 weekly unemployment benefit at the end of July and came as Democrats in Congress have failed to reach an agreement with the White House on extending it.
- Trump administration on Thursday declined to acknowledge any plans to meet with China over the Phase 1 trade deal after the commerce ministry in Beijing said bilateral talks would be held “in the coming days” to evaluate the agreement’s progress.
Market Views
- Asian markets were higher on Friday morning after a tech-driven rally on Wall Street in which the Nasdaq hit a record high despite downbeat data that affirmed the Fed’s dour outlook on U.S. economic recovery. Hang Seng index rose 136 points while Nikkei 225 index gained 78 points.
- Oil prices fell about 1% as concerns mounted about excess crude supplies. The decline came after Reuters reported that some members of the Organization of the Petroleum Exporting Countries and its allies would need to cut output by an extra 2.31 million barrels per day (bpd) to make up for recent oversupply.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,776
Target price:
Protective stop:
Outlook
This index has been retracing for the past few days after clocking its all-time high at 28,155. This pullback was supported by the rising 20EMA, and as long as this support holds, we could see price testing its high again. Stochastic is still strong at the moment. MACD is also bullish, but we could expect a bullish crossover if price holds at 20EMA.
Trading Idea
Buy 27,515 for 27,950 with a stop below 27,300.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long
Last : 25,328
Target price: 26,150
Protective stop: 25,000 Triggered
Outlook
Price has been declining after reaching a high since 7 Jul. It is currently sitting at the rising trendline support that formed since Mar 20. A Hammer candlestick was seen during the last trading session and we would like to see a follow-through candle to confirm the rebound. A violation of the rising trendline would hint for deeper correction. Stochastic is falling but still look strong. MACD is at the zero line, and a bearish crossover is likely.
Trading Idea
Buy 25,500 with stop below 25,000 for 26,150. Order was filled on 17 Aug. Stop was triggered on 20 Aug
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,499
Target price :
Protective stop:
Outlook
This index has been rising steadily along with the rising 20EMA which is acting as support at the moment. A new all-time high of 11,498 was created last night, where we have seen price penetrated above its previous high. The next resistance lies at 11,550. Stochastic is still strong and is rising at the moment. MACD is bullish and had a bullish crossover.
Trading Idea
Wait for better trading idea
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 22,977
Target price:
Protective stop:
Outlook
Price has been resisted by the previous high resistance, which is also the gap resistance. It is now going to test the 20EMA support at 22,830. Watch out for the price reaction at this support. If price holds at 20EMA, a possible rebound to test its high is likely, whereas a violation of the 20EMA would bring price lower. Stochastic is falling at the moment. MACD is bullish but a bearish crossover is likely.
Trading Idea
Wait for better trading idea
