- U.S. stocks were mixed after the close on Friday, as gains in the Technology, Healthcare and Telecoms sectors led shares higher while losses in the Utilities, Basic Materials and Oil & Gas sectors led shares lower. Dow Jones fell 0.21%, S&P 500 declined 0.03%, and NASDAQ Composite climbed 0.21%.
- Meanwhile, the People’s Bank of China also plans further regulatory tightening in the e-commerce sector, and the People’s Government of Beijing Municipality proposed an investment in ride-hailing company Didi Global.
- U.S. President Joe Biden could, however, make his decision on whether to re-nominate Fed Chair Jerome Powell to a second term within the week, while Dallas Fed President Robert Kaplan will speak on Wednesday.
- Asia Pacific stocks were higher on Monday morning, with a rally in Japanese stocks with the imminent resignation of the prime minister countered by Friday’s disappointing U.S. jobs report. Hang Seng index rose 128 points and Nikkei 225 index gained 461 points.
- The European Central Bank holds its policy meeting this week and a number of policy hawks have been calling for a step back in their huge asset buying programme, though President Christine Lagarde has sounded more dovish.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long @ 35,300
Last : 35,366
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.
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 : 26,013
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 is testing 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 25,150 for 26,150.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,657
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 five sessions. If price cannot move above the upper channel boundary, we could see a pullback towards 20EMA at 15,350. 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 4485. Stochastic is at the overbought region. MACD is still bullish.
Wait for better trading idea