- S&P 500 ended lower on Friday after data showed weaker jobs growth than expected in September, yet investors still expected the Federal Reserve to begin tapering asset purchases this year. Dow Jones fell 8 points while Nasdaq Composite lost 74 points.
- The Labour Department’s nonfarm payrolls report showed the U.S. economy in September created the fewest jobs in nine months as hiring dropped at schools and some businesses were short of workers. The unemployment rate fell to 4.8% from 5.2% in August and average hourly earnings rose 0.6%, which was more than expected.
- Analysts at BofA warned the global inflationary pulse would be aggravated by energy costs with oil potentially topping $100 a barrel amid limited supply and strong re-opening demand.
- Asia Pacific stocks were mostly up on Monday morning, even as the latest U.S. jobs report disappointed, the global energy crunch continues and central banks prepare to begin asset tapering. Hang Seng index rose 496 points and Nikkei 225 index gained 440 points.
- Declining China-Taiwan relations are also on investors’ radars. Taiwanese President Tsai Ing-Wen on Sunday said the island will defend its sovereignty, while Chinese President Xi Jinping declared just a day earlier that unification will be achieved.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,679
This index rebounded after hitting the previous low support zone for the third occasion. It moved above the 20EMA resistance and is trading near to its previous high of 35,064. As long as price stays above the 20EMA, there is still chance for price to move higher. Stochastic is rising and there is a bullish MACD crossover.
Wait for better trading ideas.
Hang Seng Index
(CFD Symbol: HK50)
Last : 25,302
Price rebounded after forming a Double Bottom chart pattern. It has moved above the 20EMA resistance and the support-turned-resistance zone. As long as price stays above 24,750, we are likely to see price testing 26,820. Stochastic is rising and MACD has turned bullish.
Buy 25,050 for 25,900 with a stop below 24,650.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,755
Target price :
This index has been moving within a rising channel since Sep 2020. Price rebounded after being supported by the trendline support, which is also near to the channel support. The 20EMA is capping price’s rally at 14,960. It has to surpass the 20EMA for more upside. Stochastic is rising but MACD is still bearish.
Sell 14,990 for 14,300 with a stop above 15,200.
Nikkei 225 Index
(CFD Symbol: JP225)
Price rebounded after hitting the previous low support zone. It is going to test its overhead 20EMA resistance at 28,940. If price can penetrate above the 20EMA, we are likely to see more upside. Stochastic is rising but MACD remains bearish.
Buy 27,900 with a stop below 27,550 for 28,700.