- Stocks in Wall Street climbed on Friday, led by technology shares, after a tepid U.S. monthly jobs report relieved investor concerns the Federal Reserve might rein in monetary stimulus soon. Dow Jones rose 179 points, S&P 500 was up 37 points and Nasdaq Composite gained 199 points.
- U.S. employers increased hiring in May and raised wages as they competed for workers. But the nonfarm payrolls increase of 559,000 jobs was below the 650,000 forecast of economists polled by Reuters. Investors were concerned that a robust jobs report that pointed to rising inflation could prompt the Fed to pull back on stimulus put in place during the pandemic.
- Investors will also watch Washington for clues on whether an outsized rally in shares of companies that would benefit from President Joe Biden’s proposed $1.7 trillion infrastructure plan has more room to run this week.
- Asian shares turned lower on Monday as relief over the benign U.S. jobs report was chilled by caution ahead of key inflation data later this week, while a coronavirus outbreak in Taiwan took a toll on chip manufacturers. Hang Seng index fell 205 points while Nikkei 225 index rose 64 points.
- Oil prices ran into profit-taking after Brent topped $72 a barrel for the first time since 2019 last week as OPEC+ supply discipline and recovering demand countered concerns about a patchy global COVID-19 vaccination rollout.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 34,540
Last : 34,732
Target price: 35,000
Protective stop: 34,300
This index is still rising along with the 20EMA which is acting as support at 34,410. As long as the 20EMA support holds, the bullish trend remains intact. Price could go higher to test its high of 35,092. Stochastic could be falling soon but MACD is still bullish at the moment.
Buy at 34,540 for 35,000, with a stop below 34,199. Entry order was filled on 28 May. Moves Stop higher to 34,300 on & June.
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,705
This index is expected to move within a rectangle consolidation zone that ranged from 27,500 to 29,570. It has been falling from the upper boundary and has violated the 20EMA support at 28,850. This could hint for further correction towards the lower end. Stochastic is falling from the overbought region. MACD has turned bullish.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,745
Target price :
Price rebounded after hitting the rising trendline support that formed since November 2020 for the fourth time. The bullish trend will remain intact as long as price stay above the trendline. Price managed to stay above the 20EMA at 13,600 again. As long as the 20EMA holds, we could see more upside ahead. Else, a correction towards the trendline is likely. Stochastic is at the overbought region but MACD is still bullish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4175
Target price: 4245
Protective stop: 4160
Price is approaching its high of 4244. It has been supported by the rising 20EMA which is acting as support at the moment at 4187. As long as the 20EMA holds, we could see price hitting the high. Else, a correction is likely. Stochastic is still strong now and MACD remains bullish.
Buy at 4175 for 4245 with a stop below 4140. Entry order was filled on 3 June. Moves Stop higher to 4160 on 7 June.