Market News
- U.S. stocks mostly climbed, and the S&P 500 posted a record closing high on Thursday, helped by gains in consumer discretionary and technology shares, while U.S. Treasury yields jumped. Dow Jones fell 6 points while Nasdaq Composite rose 94 points.
- U.S. Fed is moving closer to beginning asset tapering, with bets on whether this will be followed by interest rate hikes also increasing. In Asia Pacific, the Reserve Bank of Australia bought bonds to defend its yield target.
- Congressional Democrats have failed to reach consensus over both the tax and spending sides of a bill to enact the majority of Biden’s agenda. The ability to strike a deal as the week closes is also now in question, with Biden himself telling CNN that he does not expect Congress to pass an increase in corporate tax rates.
Market Views
- Asia-Pacific markets mostly rose in Friday morning, as shares of China Evergrande Group surged in Hong Kong following media reports that the embattled developer is set to pay off a coupon payment on a dollar-denominated bond. Hang Seng index rose 38 points and Nikkei 225 index gained 200 points.
- Chinese media reported Friday that debt-ridden developer China Evergrande Group was preparing to pay the interest on a bond that was due September 23 before the grace period ended on Saturday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 35,616
Target price:
Protective stop:
Outlook
Price has been moving higher and has hit its previous resistance high at 35,628. A possible correction towards 20EMA at 34,980 could happen if price fails to make further new high. Stochastic is at the overbought region. MACD has turned bullish.
Trading Idea
Buy 35,050 for 35,600 with a stop below 34,850.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,064
Target price:
Protective stop:
Outlook
Price rebounded after forming a Double Bottom chart pattern. It has moved above the 20EMA resistance and the support-turned-resistance zone. It is heading higher to test the upper boundary at 26,820. Stochastic is at the overbought region and MACD has turned bullish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 15,414
Target price :
Protective stop:
Outlook
This index has been moving within a rising channel since Sep 2020. Price rebounded after forming a Bullish Engulfing on 13 Oct. It has moved above the 20EMA and we are likely to see price moving higher towards the upper channel resistance. Stochastic is at the overbought region, MACD has turned bullish.
Trading Idea
Buy 15,200 for 15,700 with a stop below 14,950.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 28,925
Target price:
Protective stop:
Outlook
There is currently a price correction going on which started since 20 Oct. Price is now sitting at the Fibonacci 38% correction point which is acting as a support. If price can rebound from this support and surpass 29,490, we could see price testing 30,740. Stochastic is rising now and MACD has turned bullish.
Trading Idea
Wait for better trading idea.
