Market News
- Wall Street’s major indexes jumped over 2% on Tuesday as investors scooped up shares of mega cap growth and energy companies after the stock market swooned last week on worries over a global economic downturn.
- U.S. Fed chair Jerome Powell is due to start his testimony to Congress today with investors looking for further clues about whether another 75 basis point rate hike is on the cards at the Fed’s July meeting.
- The Reserve Bank of Australia governor Philip Lowe said in a speech that he expected inflation in Australia to peak at around 7% by the end of the year as pandemic-related supply chain disruptions resolve.
Market Views
- Asian stocks were mixed on Wednesday morning, failing to extend Wall Street’s rally as persistent worries about interest rates and inflation remained a key focus for investors. Hang Seng index fell 278 points and Nikkei 225 index rose 9 points.
- Oil prices skidded in Wednesday morning amid a push by President Biden to bring down soaring fuel costs, including pressure on major U.S. firms to help ease the pain for drivers during the country’s peak summer demand.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 30,353
Target price:
Protective stop:
Outlook
Price rebounded after forming a temporary bottom at 29,648. It has reached the Fibonacci 62% correction point, and we are likely to see a pullback in the index. If the pullback can maintain above 30,020, we could see price moving higher. Stochastic is at the oversold zone but MACD is still bearish.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 21,403
Target price:
Protective stop:
Outlook
Price rebounded after hitting its resistance-turned-support zone for two occasions previously. It is currently moving above the 20EMA and if it maintain above this support zone, we see price testing its high again. Stochastic is falling but MACD is bearish despite having a bearish crossover.
Trading Idea.
Buy 21,300 for 22,200 with a stop below 20,850.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,460
Target price:
Protective stop:
Outlook
This index could have formed a temporary bottom at 11,035. However, there is an overhead 20EMA resistance that coincides with the gap resistance, as well as the support-turned-resistance zone. Price has to penetrate above this zone to move higher. Stochastic is in the oversold zone but MACD is still bearish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3739
Target price:
Protective stop:
Outlook
Price rebounded after forming a temporary price low at 6406. There is an overhead support-turned-resistance zone, coinciding with the 20EMA and gap resistance. Price has to penetrate above this zone to move higher, else, we are likely to see price moving lower again. Stochastic is in the oversold and MACD is still bearish.
Trading Idea
Wait for better trading idea.
