- All three major U.S. indexes ended higher on Friday; however, all posted weekly losses after a steep mid-week sell-off pulled the S&P 500 and the Dow away from a string of record closing highs over concern on whether the U.S. Fed could begin tightening its dovish monetary policy sooner than expected.
- Announcements from a host of Asian nations that they are implementing drastic measures to curb the resurgence of COVID-19 due to the rise of the disease’s highly contagious Delta variant put a damper on stocks associated with economic re-engagement.
- Market participants now look to next week’s Jackson Hole Symposium in Wyoming, a gathering of major central bank leaders, for clues from Fed Chair Jerome Powell regarding the expected pace of recovery and the timeline for policy tightening.
- Asia Pacific stocks were higher on Monday morning as investors bargain-hunted after the previous week’s selloff. Hang Seng index advanced 452 points and Nikkei 225 index surged 466 points.
- A raft of “flash” manufacturing surveys for August out on Monday will offer an early indication of how global growth is faring in the face of the Delta variant, with analysts expecting some slippage and especially in Asia.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,248
Price tested the rising trendline support for the fifth time on 19 Aug. It rebounded from this trendline thereafter on a follow-through candle following the Doji that confirmed the bottom. We are likely to see price test the high of 35,628 again. Stochastic could be rising soon. MACD remains bullish
Buy 35,000 for 35,600 with a stop below 34,800
Hang Seng Index
(CFD Symbol: HK50)
Last : 25,291
Price tested its previous low support zone last Friday. It could be forming potential Double Bottom chart pattern. There is also divergence warning given from the MACD that hint for possible low. Look out for a bullish candlestick to confirm the bottom today for a test towards gap resistance zone at 26,800. Stochastic is near to oversold region. MACD is bearish.
Buy 25,000 with a stop below 24,600 for 26,000
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,146
Target price :
This index has been moving within a rising channel since Sep 2020. It is now consolidating within a Triangle pattern. Look for price to break out from the Triangle pattern to continue moving higher towards 15,570. A bullish Stochastic crossover is likely. MACD is still bullish
Buy 14,750 with a stop below 14,600 for 15,100
S&P 500 Index
(CFD Symbol: US500)
Price rebounded after being supported by the rising trendline support that formed since Sept 2020. A bullish candlestick was followed-through after a Hammer candlestick pattern, confirming the possible low. We are likely to see price testing the high of 4481 again. Stochastic is rising now. MACD is still bullish.
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