- The Nasdaq hit a record high on Thursday, led by mega-cap companies Apple, Amazon.com and Tesla, while solid results from Caterpillar and Merck helped investors shrug off signs of slowing economic growth. Dow and S&P 500 were up 0.98% and 0.68% respectively.
- US GDP data showed the U.S. economy grew at a 2% annualized rate in the third quarter as COVID-19 infections flared up, while another set of data showed fewer Americans filed new claims for unemployment benefits last week. The weak economic data was offset by a strong labour report.
- Investors are worried about varied responses by central banks worldwide to rising inflation. A rise in global interest rate is likely to affect the equity market.
- U.S. stock futures slipped on Friday, as Amazon and Apple quarterly earnings bucked a recent strong trend and growth and inflation fears continued to weigh. Both tech giants reported earnings below market expectation. Hang Seng was down 114 point while the Nikkei was up 99 points.
- China Evergrande Group’s shares opened up 1.2% following news that the cash-strapped developer had made payments for an offshore bond coupon ahead of Friday’s expiry of a grace period, meeting its second dollar-bond repayment obligation this month.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,706
Price has penetrated its previous resistance high at 35,628. A potential Shooting Star candlestick pattern is hinting of a possible price high. A correction can sent price down to the 20EMA line at 35,180. Stochastic is at the overbought region and could be turning down. MACD has turned bullish.
Buy 35,200 for 35,600 with a stop below 34,950.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 25,470
Last : 25,466
Target price: 26,300
Protective stop: 25,150
A bearish Engulfing candlestick pattern has sent price to the 20EMA support at 25,505. A violation of the 20EMA would hint at further decline towards 24,750. However, if price can stay supported at the 20EMA we are likely to see a move back to the previous high at 26,307. Stochastic is falling but MACD is still bullish.
Buy 25,470 with a stop below 25,150 for profit target 26,300. Entry order was filled on 29 Oct.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,660
Target price :
This index has been moving within a rising channel since Sep 2020. Price continues to move higher and there is no sign of a potential reversal as yet. The next upside resistance lies at 16,000. Stochastic is at the overbought region. MACD remains bullish and is hinting of a bullish price trend ahead.
Buy 15,200 for 15,800 with a stop below 14,950.
S&P 500 Index
(CFD Symbol: US500)
Price penetrated its previous high resistance zone and has continued to move higher. A Double Bottom chart pattern has a price target at 4694. 20EMA is bullish but Stochastic is at the overbought region. MACD remains bullish.
Wait for better trading idea.