Market News
- S&P 500 and Nasdaq closed lower on Friday as disappointing quarterly reports from Snap and Intel put pressure on the communications and technology sectors and investors turned skittish as Fed Chair Jerome Powell discussed stimulus tapering.
- Fed Chair Jerome Powell on Friday said the U.S. central bank should start the process of reducing its support of the economy by cutting back on its asset purchases, but should not yet touch interest rates. However, U.S. Treasury Secretary Janet Yellen is among those who expect inflation to be a temporary phenomenon that will ease in the second half of 2022.
- In the latest announcement to worry some investors, the top decision-making body of the Chinese parliament said on Saturday it will roll out a pilot real estate tax in some regions.
Market Views
- Asian shares were mixed on Monday morning ahead of a week packed with major quarterly earnings announcements, with attention focusing on the latest COVID-19 outbreak in China. Hang Seng index rose 72 points while Nikkei 225 index fell 284 points.
- Meanwhile, the Covid-19 situation in China could weigh on investor sentiment after an official warned that the outbreak could spread further, Reuters reported Sunday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 35,636
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 35,040 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 : 26,104
Target price:
Protective stop:
Outlook
Price rebounded after forming a Double Bottom chart pattern. It is heading higher to test the upper boundary at 26,820. The 20EMA is providing support at 25,360. 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 : 15,339
Target price :
Protective stop:
Outlook
This index has been moving within a rising channel since Sep 2020. It could be consolidating within a Flag pattern currently, and if a breakout occurs, we can expect further upside 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
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4539
Target price:
Protective stop:
Outlook
Price hit its previous high resistance zone and has formed a potential Spinning Top candlestick pattern on 22 Oct. If price cannot make a further new high, a pullback towards the 20EMA at 4457 is likely. Stochastic is at the overbought region, but MACD remains bullish.
Trading Idea
Sell 4545 for 4460 with a stop above 4585.
