Market News
- U.S. stocks were higher after the close on Friday, as gains in the Financials, Consumer Services and Industrials sectors led shares higher. Dow Jones advanced 382 points, hitting a new 1-month high. S&P 500 rose 33 points while Nasdaq Composite gained 73 points.
- Despite the increasing risk appetite, concerns about inflation amid a continuing global energy crunch and uneven economic recovery from COVID-19 continue to weigh on investor sentiment. This comes as key central banks prepare to begin asset tapering.
- Fed Chair Jerome Powell will take part in a policy panel discussion on Friday. Bank of England Governor Andrew Bailey said the central bank will “have to act” to curb inflationary pressure and warned that higher energy costs will mean price pressures will continue.
Market Views
- Asia Pacific stocks were mostly down on Monday morning, as energy prices continue to soar and add to inflationary pressure concerns. Hang Seng index fell 162 points and Nikkei 225 index slid 80 points.
- With the Chinese data closely watched to gauge the severity of a global energy crunch in the country, People’s Bank of China Governor Yi Gang said on Sunday that China’s economy was “doing well”, but it faces challenges such as default risks for certain firms due to “mismanagement”.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 35,324
Target price:
Protective stop:
Outlook
Price penetrated above its recent price resistance after breaking out from a Flag pattern, which is one of the continuation patterns. The 20EMA is rising, suggesting a bullish trend. We are likely to see price testing 35,628. Stochastic is rising. MACD has turned bullish.
Trading Idea
Buy 35,100 for 35,600 with a stop below 34,850.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long @ 25,050
Last : 25,146
Target price: 25,900
Protective stop: 24,650
Outlook
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.
Trading Idea
Buy 25,050 for 25,900 with a stop below 24,650. Entry price was filled on 12 Oct. Changed stop higher to 24,850.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation : Short @ 14,990
Last : 15,112
Target price : 14,300
Protective stop: 15,200
Outlook
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.
Trading Idea
Sell 14,990 for 14,300 with a stop above 15,200. Entry order was filled on 14 Oct.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4470
Target price:
Protective stop:
Outlook
Price broke and closed above the declining trendline resistance last Thursday with a bullish candle. It has moved above the 20EMA as well. As long as price stays above the trendline, we are likely to see price moving higher towards its previous high at 4549. Stochastic is rising, MACD has turned bullish.
Trading Idea
Buy 4420 for 4520 with a stop below 4360
