- Wall Street scaled new highs on Friday, with the S&P closing up for a seventh straight day, after jobs data for June showed robust hiring yet persistent weakness in the labour market that will keep the Federal Reserve from raising interest rates any time soon.
- U.S. nonfarm payrolls increased by a bigger-than-expected 850,000 jobs last month. But the unemployment rate unexpectedly ticked up to 5.9% from 5.8%, while the closely watched average hourly earnings, a gauge of wage inflation, rose 0.3% last month, lower than the consensus forecast for a 0.4% increase.
- Investors have feared a stronger-than-expected recovery and the prospect of surging inflation that could force the Fed to pare its support and raise rates, hurting technology shares whose growth and cash flow is farther in the future.
- Asian stocks slid on Monday morning after a U.S. jobs report signaled the economic recovery remained intact but didn’t yet warrant any immediate withdrawal of Fed stimulus. Hang Seng index fell 39 points and Nikkei 225 index slipped 172 points.
- Crude oil slipped as OPEC+ talks dragged on. Saudi Arabia’s energy minister pushed back on Sunday against opposition by fellow Gulf producer the United Arab Emirates to a proposed OPEC+ deal and called for “compromise and rationality” to secure agreement when the group reconvenes on Monday.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @34,250
Last : 34,724
Target price: 34,800 Filled
Protective stop: 33,915
This index hit the resistance zone for the third times last Friday. A penetration of this resistance is likely to bring price higher towards its all-time high at 35,092. The 20EMA is rising and is acting as support at 34,360. Stochastic is rising now and is in the overbought region. MACD has turned bullish after having a bullish crossover.
Buy 34,250 for 34,800 with a stop below 33,915. Entry was filled on 28 June. Profit target was reached on 2 July.
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,190
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 broke below the 20EMA and is heading lower now. We could see price testing the lower boundary again. Stochastic is falling now. MACD has turned bearish and there is a bearish crossover.
Buy 27,850 for 28,700 with a stop below 27,400.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,705
Target price :
Price has reached a high at 14,735 last Friday after resting for the previous two sessions. The next resistance lies at Fibonacci 200% projection level at 15,200. The 20EMA is rising and is acting as support at 14,290. Stochastic is currently in the overbought region. MACD is still bullish but has been given divergence warning
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Price broke out from the Triangle chart pattern on 25 June. It is a bullish sign and we could see price moving higher. It is now near to the first resistance at 4347. The 20EMA is acting as support at 4270. Stochastic is in the overbought region now. MACD remains bullish.
Wait for better trading idea