Market News
- Wall Street closed lower on Thursday as investors banked some profits after three straight days of gains and turned their focus toward upcoming inflation data and how it might influence the Federal Reserve’s meeting next week.
- The Dow Jones Index gained 6 points to close at 35,754.69. However, the S&P 500 lost 33 points, or 0.72%, to 4,667.45 and the Nasdaq Composite lost 268 points or 1.71%, to 15,517.37.
- U.S. consumer price index (CPI) for November is due later Friday and a Reuters poll of economists expect it to have risen 6.8% year-on-year, overtaking a 6.2% increase in October, which was the fastest gain in 31 years. A higher-than-expected reading would strengthen the case for a policy tightening decision at the U.S. central bank’s meeting.
Market Views
- Asian shares slipped on Friday amid renewed concerns about COVID-19 and ahead of key U.S. inflation data that could set direction on Federal Reserve rates. The Nikkei 225 was down by 155 points while the Hang Seng Index lost 122 points.
- In China, the central bank on Thursday directed financial institutions to hold more foreign exchange in reserve for a second time this year, which markets interpreted as an attempt to slow down a recent rapid appreciation of the yuan.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 35,751
Target price:
Protective stop:
Outlook
This index has moved above its 20EMA, turning the trend bullish. Two Doji candlesticks are hinting at a consolidation. However, the rally is likely to continue towards its previous high of 36,565. Stochastic is rising from the oversold zone and is hinting at a price rally. MACD is bearish but its fast line has moved above the zero line. 20EMA is hinting at a bullish price trend.
Trading Idea
Buy 35,400 for 36,550 with a stop below 35,050.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,181
Target price:
Protective stop:
Outlook
This index has moved off its low at 23,184 but will need to move above its 20EMA to re-gain its bullish impetus. 20EMA is bearish and is hinting at a bearish price trend. The 20EMA is also capping price advance at 24,290. Stochastic has a bullish crossover and is hinting at a bullish price trend. MACD is bearish and is hinting at a bearish price trend.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 16,168
Target price :
Protective stop:
Outlook
This index has moved above its 20EMA at 16,110, hinting at a new bullish price trend. Yesterday’s decline has sent the index to the 20EMA line. Stochastic has a bullish crossover and is moving higher. MACD is bearish while 20EMA is bullish. We think this index can proceed higher to its previous high at 16,750 if it can stay above the 20 EMA line.
Trading Idea
Buy 16,150 for 16,750 with a stop below 15,800.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4670
Target price:
Protective stop:
Outlook
This index has moved off its low at 4493 and could be heading towards its previous high at 4744. Price has also moved above its 20EMA, confirming the bullish trend. Stochastic has a bullish crossover near to the oversold zone and is hinting at a bullish price trend. MACD has a bullish crossover and is hinting at a price rally.
Trading Idea
Wait for better trading idea
