Market News
- U.S. stocks were mixed after the close on Friday, as gains in the Consumer Goods, Utilities and Financials sectors led shares higher while losses in the Technology, Basic Materials and Telecoms sectors led shares lower.
- Investors now look to June’s U.S. jobs reports, including non-farm payrolls, due on Friday. Across the Atlantic, investors will also be paying attention to comments from European Central Bank (ECB) President Christine Lagarde, due on Friday as well.
- A spike in coronavirus infections in Asia with Australia’s most populous city of Sydney plunging into a lockdown after a cluster of cases involving the highly contagious Delta strain ballooned is raising concerns to investors.
Market Views
- Asia Pacific stocks were mostly down Monday morning as the more virulent Delta variant of the COVID-19 virus continues to spread while central banks contemplate withdrawing their stimulus measures. Hang Seng index remained unchanged while Nikkei 225 index fell 81 points.
Investors will keep a close eye on official factory activity from China due Wednesday. The manufacturing reading is expected to slow to 50.7 from 51. The private sector Caixin Manufacturing PMI will follow later in the week
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,464
Target price:
Protective stop:
Outlook
This index could be consolidating within a Triangle pattern. Price is approaching the overhead declining trendline resistance. It has to breakout this Triangle for more upside ahead. Else, a correction towards the lower end support at 33,290 is likely. Stochastic is rising now. MACD has turned bearish despite having a bullish crossover
Trading Idea
Buy 34,250 for 34,800 with a stop below 33,915.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 29,306
Target price:
Protective stop:
Outlook
This index remains sideways as it is still moving within a rectangle consolidation zone that ranged from 27,500 to 29,570. It is now moving above the 20EMA and is going to test the upper resistance again. Stochastic is rising now. MACD is bullish and there is a bullish MACD crossover.
Trading Idea
Buy 29,020 for 29,570 with a stop below 28,750.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 14,362
Target price :
Protective stop:
Outlook
Price continues to form new highs after rising along with the 20EMA. It is raising concerns as there is divergence warning given from both Stochastic and MACD which could hint at possible top. There is potential Bearish Harami candlestick pattern formed last Friday. Watch out if there is a confirmation candle formed tonight. Stochastic is currently in the overbought region. MACD is still bullish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4283
Target price:
Protective stop:
Outlook
Price broke out from the Triangle chart pattern last Friday. We would like to see a firm breakout that lasts for at least three consecutive days to confirm the breakout. The 20EMA is acting as support at 4232. Stochastic is rising now. MACD remains bullish but it has given a divergence warning.
Trading Idea
Wait for better trading idea
