- U.S. stocks finished lower on Tuesday, as investors grew jittery in the run up to third-quarter earnings, while a jump in Tesla shares helped support the market. Dow Jones was down the most, weighed by healthcare and industrial.
- Fed is expected to release minutes on Wednesday from its last policy meeting, which market participants will scour for hints about when the U.S. central bank could begin tapering its massive bond-buying program.
- Analysts expect to see strong U.S. profit growth for the third quarter. But a number of companies have warned of issues and investors are worried about how supply chain problems and higher prices will affect businesses emerging from the coronavirus pandemic.
- Asia Pacific stocks were lower on Wednesday morning, with investors weighing the impact of elevated inflation on the economic recovery from COVID-19 and await corporate earnings reports. Nikkei 225 index fell 61 points while Hong Kong markets were closed due to a typhoon.
- Despite growing inflation worries, there is growing optimism about the state of the economic recovery. Three U.S. Federal Reserve policymakers on Tuesday said the U.S. economy has healed enough for the central bank to begin to withdraw its crisis-era support.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,367
This index rebounded after hitting the previous low support zone for the third occasion. The rally was capped near to its previous resistance high. Price has moved below the 20EMA after it could not penetrate above 34,960. We are likely to see price testing the support zone again. A bearish Stochastic crossover is likely. MACD is still bearish.
Wait for better trading ideas.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 25,050
Last : 24,972
Target price: 25,900
Protective stop: 24,650
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. Entry price was filled on 12 Oct.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 14,633
Target price :
This index has been moving within a rising channel since Sep 2020. The 20EMA is capping price’s rally at 14,890. It has to surpass the 20EMA for more upside. A violation of the rising channel will hint at a bearish price trend ahead. A bearish Stochastic crossover is likely. 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 28,790. If price can penetrate above the 20EMA, we are likely to see more upside. Stochastic is rising but MACD remains bearish.
Wait for better trading idea.