- Wall Street ended lower on Friday, weighed down by declines in Amazon, Apple, Nvidia and other heavyweight technology stocks, while investors worried about a rise in coronavirus cases tied to the highly contagious Delta variant.
- Investors also digested the decline in Treasury yields. Some investors saw the trend as a sign that the economic recovery is slowing down as countries reimpose restrictive measures to curb COVID-19 outbreaks involving the Delta variant, while others suggested that it is the bond rally that is slowing down.
- Facebook on Saturday refuted remarks made by President Joe Biden that social media platforms are “killing people” by allowing coronavirus vaccine misinformation on their services and argued that vaccine acceptance among its users has actually risen in the U.S.
- Asia Pacific stocks were down, falling to a one-week low, on Monday morning, as continuing concerns about the impact of continuously rising COVID-19 cases, alongside inflationary pressures, on the global economic recovery dampened investor sentiment. Hang Seng index fell 493 points and Nikkei 225 index slid 348 points.
- Oil prices stumbled more than 1% after an agreement over the weekend within the OPEC+ group of producers to boost output at a time when the outlook for demand is still cloudy.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 34,600
Last : 34,523
Target price: 35,080
Protective stop: 34,350
Price hit its previous high last Friday, but closed with a bearish candlestick. It could be a sign of a correction ahead as price may form a potential Double Top chart pattern. Price is violating the 20EMA support at 34,610. Stochastic is falling from the overbought region now. MACD has turned bullish but just had a bearish crossover.
Buy 34,600 for 35,080 with a stop below 34,350. Entry order was filled on 16 July.
Hang Seng Index
(CFD Symbol: HK50)
Last : 27,517
This index attempted to move higher but this attempt was halted by the falling 20EMA which is acting as first layer of resistance. We are likely to see a price correction again. Do watch out if price can form a higher low to form the base low. Stochastic is rising now but MACD has turned bearish.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,651
Target price :
Price reached a high at 15,003 on 14 July, forming potential Tweezer top pattern. This index is likely to have a price correction towards the 20EMA support at 14,600. A violation of the 20EMA would hint for deeper correction. Stochastic is falling from the overbought region now. MACD is still bullish but had a bearish crossover.
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4325
Target price: 4390
Protective stop: 4285
Price has been retracing after reaching a high on 13 July. It is violating the 20EMA support at 4319 now and we are likely to see price testing the upper boundary of the Triangle chart pattern. Stochastic is falling now. MACD remains bullish but has given divergence warning.
Buy 4325 for 4390 with a stop below 4285. Entry order was filled on 16 July.