Market News
- The S&P 500 and Nasdaq rose on Thursday, extending their streaks of record high closes to six sessions, as investors digested the Federal Reserve’s decision to start reducing its monthly bond purchases but holding back on interest rate hike. The Dow posted a slim loss, ending its streak of record closes at four, weighed down by banking stocks
- The gains came even after the U.S. Federal Reserve on Wednesday finally announced that it would begin tapering its massive asset purchase programme, though Fed Chair Jerome Powell said he was in no rush to hike borrowing costs.
- The move was seen as favourable with Wall Street indexes closing at record highs as investors took a more balanced view of the Fed monetary policy update and the overall picture painted by fresh upbeat data for the U.S. services industry.
Market Views
- Asian stocks were mixed in Friday trade as Hong Kong weighed on the regional index, falling almost 1%, pressured by index heavyweight HSBC as well as by property stocks. The Nikkei was down 200 points in late morning trade.
- In Hong Kong, trading in shares of Chinese developer Kaisa Group Holdings Ltd was suspended, a day after the company said a subsidiary had missed a payment on a wealth management product, the latest sign of a deepening liquidity crisis in the Chinese property sector
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 36,106
Target price:
Protective stop:
Outlook
Price continues to move higher but a Shooting Star candlestick pattern in the previous session is hinting of a possible price high and a possible reversal. A correction can sent price down to the 20EMA line at 35,575. Stochastic is at the overbought region and could be turning down. MACD is bullish but a bearish divergence could be forming
Trading Idea
Buy 35,600 for 36,100 with a stop below 35,400.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,049
Target price:
Protective stop:
Outlook
A bearish Engulfing candlestick price pattern is hinting of more downsides ahead. Price has also dropped below the 20EMA line which reinforces the bearish trend. This is likely to send this index towards 24,370. Stochastic is falling but is near to the oversold zone. MACD remains bullish.
Trading Idea
Sell 25,250 with a stop above 25,500 for profit target 24,400.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 16,347
Target price :
Protective stop:
Outlook
This index continues to move higher and has been moving within a rising channel since Sep 2020. A possible Shooting Star candlestick is hinting of a possible price high and a reversal. Stochastic is at the overbought region. MACD remains bullish and is hinting of a bullish price trend ahead
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4681
Target price:
Protective stop:
Outlook
Price penetrated its previous high resistance zone and has continued to move higher towards a Double Bottom chart pattern’s price target at 4694. 20EMA is bullish but Stochastic is at the overbought region. MACD remains bullish.
Trading Idea
Wait for better trading idea.
