Market News
- U.S. stocks gained more than 1% on Thursday as investors appeared relieved about the Fed’s stance on tapering stimulus and raising interest rates. Upbeat outlooks from Accenture and Salesforce helped to bolster the market.
- The Fed said on Wednesday it could begin reducing its monthly bond purchases by as soon as November, and that interest rates could rise quicker than expected by next year. The November deadline was largely priced in by markets.
- Concerns eased further over a potential default by Chinese property developer Evergrande even as Reuters reported that some holders of the firm’s dollar bonds had given up hope of getting a coupon payment by a key Thursday deadline.
Market Views
- Asia Pacific stocks were higher on Friday morning, despite concerns about the impact from China Evergrande Group’s financial woes still linger. Hang Seng index rose 53 points and Nikkei 225 index surged 561 points.
- Across the Atlantic, the Bank of England (BOE) kept its interest rate unchanged at 0.10% as it handed down its policy decision on Thursday. BOE did keep the possibility of an interest rate hike in 2021 open, which pushed down 10-year gilts.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,782
Target price:
Protective stop:
Outlook
This index rebounded strongly after hitting the support zone of 33,736. It is now testing the 20EMA resistance at 34,750, coinciding with the Fibonacci 62% correction point. Price has to surpass this resistance zone for a test towards its previous high. Else, we are likely to see pullback. Stochastic is rising but MACD is bearish now.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,527
Target price:
Protective stop:
Outlook
Price violates the previous low support zone on 20 Sep with a bearish long candle. It is now struggling to move back inside the consolidation zone again. The 20EMA comes in as a resistance at 25,175 as well. Stochastic is at the oversold region. MACD remains bearish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 15,315
Target price :
Protective stop:
Outlook
This index has been moving within a rising channel since Sep 2020. It rebounded after being supported by the Triangle rising trendline support. It is now testing the 20EMA resistance at 15,330. Price has to breakthrough the 20EMA for more upside. Stochastic is rising but MACD has turned bearish.
Trading Idea
Buy 15,000 for 15,650 with a stop below 14,800.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4451
Target price:
Protective stop:
Outlook
Price rebounded two days ago with bullish long candlestick. It is now testing the 20EMA resistance at 4448 and is trading near to the lower boundary of the rising channel. Price has to move back inside the channel to be bullish again. Stochastic is rising now but MACD has turned bearish.
Trading Idea
Buy 4330 with a stop below 4300 for 4410
