- The Dow Jones Industrial Average rose 0.26%, after eclipsing 36,000 points for the first time during intraday trading. The Nasdaq rose and the S&P 500 edged higher as gains for energy shares and Tesla buoyed indexes and investors looked ahead to a major Federal Reserve meeting later in the week
- A 4.4% surge in the government’s index of core personal consumption expenditures – the Fed’s preferred inflation measure – solidified market expectations for a rates lift-off around the middle of next year as the focus shifted to U.S. Fed’s timetable for a rollback in stimulus measures at a key meeting starting Tuesday
- The U.S. Federal Reserve’s Federal Open Market Committee starts its two-day meeting on interest rates and it is expected to keep the benchmark rates unchanged. The Fed is also expected to announce plans to phase out its $120 billion in monthly asset purchases by the middle of 2022.
- Asian shares were mixed on Tuesday as nervous investors awaited several key central bank meetings that could set the tone for risk appetite heading into next year. Hang Seng index climbed 89 points while the Nikkei slumped 176 points.
- The immediate focus is on the U.S. Federal Reserve and Bank of England. The Fed holds it FOMC today and tomorrow while the Bank of England meets on Thursday.
Dow Jones Index
(CFD Symbol: US30)
Last : 35,834
Price has penetrated its previous resistance high at 35,628. A Shooting Star candlestick pattern in the previous session is hinting of a possible price high. A correction can sent price down to the 20EMA line at 35,380. 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 : 25,272
Target price: 26,300
Protective stop: 25,150 Triggered
A bearish Engulfing candlestick pattern has sent price below the 20EMA support at 25,505. A violation of the 20EMA is likely to send this index towards 24,750. The bearish Engulfing candlestick pattern reinforces the bearish price trend. 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. Stop was triggered on 1 Nov.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 15,882
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.
Wait for better trading idea.
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.
Buy at 4520 for 4690 with a stop below 4430.