Market News
- The S&P 500 and the Nasdaq both registered record closing highs on Tuesday, lifted by Apple and other technology stocks after an upbeat consumer confidence report. Morgan Stanley jumped 3.4% after it doubled its dividend to 70 cents per share in the third quarter.
- An upbeat consumer confidence report on Tuesday set a positive tone for jobs data. U.S. consumer confidence increased in June to its highest level since the COVID-19 pandemic started more than a year ago, bolstering expectations for strong economic growth in the second quarter.
- Moderna jumped 5.2% to a record high after the drugmaker’s COVID-19 vaccine showed promise in a lab study against the Delta variant first identified in India, with a modest decrease in response compared with the original strain.
Market Views
- Asian shares were mixed on Wednesday morning after rising consumer confidence in economic recovery boosted the Nasdaq index to its highest-ever closing level. Hang Seng index fell 71 points while Nikkei 225 index rose 2 points.
- Underlining the impact of even small flare-ups of new COVID-19 cases, new data showed activity in China’s services sector grew at a slower pace in June as curbs from resurgence in cases in southern China restrained a rebound in consumption.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @34,250
Last : 34,327
Target price: 34,800
Protective stop: 33,915
Outlook
This index could be consolidating within a Triangle chart pattern. Price is approaching the overhead declining trendline resistance. It has to break out of this Triangle pattern 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. Entry was filled on 28 June.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long @ 29,020
Last : 28,919
Target price: 29,570
Protective stop: 28,750
Outlook
This index remains in a sideways trend as it is still moving within a rectangle consolidation zone that ranged from 27,500 to 29,570. It is now testing the 20EMA at 28,850. A failure move to sustain at the 20EMA could lead to a price decline. 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. Entry was filled on 29 June.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 14,589
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. Stochastic is currently in the overbought region and MACD is still bullish.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4296
Target price:
Protective stop:
Outlook
Price broke out from the Triangle chart pattern last Friday. The next resistance lies at 4347. The 20EMA is acting as support at 4244. Stochastic is rising now. MACD remains bullish but it has given a divergence warning.
Trading Idea
Wait for better trading idea
