- S&P 500 and Nasdaq eked out record finishes on Thursday, while the Dow also posted a modest gain, as higher commodity prices helped energy names recover ground and the latest jobs data left investors unfazed about existing positions.
- Data on Thursday showed the number of Americans filing new claims for jobless benefits fell last week, although the focus will be on the Labour Department’s monthly jobs report on Friday to set the stage for the Fed’s policy meeting later this month.
- Political debate over planned U.S. fiscal outlays is also on investors’ radars. Senator Joe Manchin demanded a “strategic pause” in action on U.S. President Joe Biden’s economic agenda, jeopardizing a proposed $3.5 trillion tax and spending package.
- Asia Pacific stocks were mixed on Friday morning even as the latest Chinese economic data disappointed. Investors now await the latest U.S. jobs report which they hope will provide clues on Fed’s monetary policy moving forward. Hang Seng index fell 48 points while Nikkei 225 index rose 163 points.
- In corporate developments, investors will watch Hong Kong-listed shares of Alibaba following reports that the firm is set to invest 100 billion yuan (about $15.5 billion) by 2025 for “common prosperity.”
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 35,300
Last : 35,446
Target price: 35,60
Protective stop: 35,180
Price is supported by the rising 20EMA which is acting as support at 35,290. If it can surpass its recent high of 35,449, we are likely to see price testing its all-time high at 35,628. Stochastic is at the overbought region now. MACD remains bullish and a bullish crossover is likely.
Buy 35,300 for 35,600 with a stop below 34,950. Entry order was filled on 2 Sep. Raise stop to 35,180 on 3 Sep.
Hang Seng Index
(CFD Symbol: HK50)
Last : 25,932
Price tested its previous low support zone on 20 Aug. It could be forming a potential Double Bottom chart pattern. There is also divergence warning given from the MACD that hints of a possible low. Price penetrated the 20EMA and we could expect a test of 26,890. Stochastic is rising now. MACD has turned bullish.
Buy 25,600 with a stop below 25,100 for 26,800.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,607
Target price :
This index has been moving within a rising channel since Sep 2020. It broke out from a Triangle pattern on 23 Aug and tested the upper boundary of the channel for the past four sessions. If price cannot move above the upper channel boundary, we could see a pullback towards 20EMA at 15,320. Stochastic is at the overbought region. MACD is still bullish.
Buy 15,400 for 15,700 with a stop below 15,200
S&P 500 Index
(CFD Symbol: US500)
Price rebounded after being supported by the rising 20EMA. We are likely to see price testing 4560, which is the upper boundary of the rising channel. The 20EMA is still rising and is acting as support at 4481. Stochastic is at the overbought region. MACD is still bullish.
Wait for better trading idea