Market News
- Wall Street’s main indexes closed higher on Thursday, fueled by strong performance from defensive and tech shares that outweighed declines for economically sensitive groups as worries persisted about a potential recession.
- In the second day of testifying before Congress, U.S. Fed Chair Jerome Powell said the Fed’s commitment to reining in 40-year-high inflation is “unconditional” but also comes with the risk of higher unemployment.
- U.S. business activity slowed considerably in June as high inflation and declining consumer confidence dampened demand across the board, a survey on Thursday showed. The Reserve Bank of Australia’s governor, Philip Lowe is set to speak on inflation later in the day
Market Views
- Asia Pacific stocks rose on Friday morning investors evaluated the economic outlook and wagered on central banks bringing inflation to heel, though growth fears dragged on commodities. Hang Seng index rose 272 points and Nikkei 225 index gained 214 points.
- Oil futures rose slightly in Asia trade. U.S. crude futures gained 0.86% to $105.17 per barrel, while international benchmark Brent crude gained 0.8% to $110.93 per barrel.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 30,774
Target price:
Protective stop:
Outlook
Price rebounded after forming a temporary bottom at 29,648. It is on the way to its overhead 20EMA resistance, which is also the support-turned-resistance zone. MACD has a bullish crossover and Stochastic is rising from the oversold zone.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 21,300
Last: 21,559
Target price: 22,200
Protective stop: 20,850
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 rising and MACD remains bullish.
Trading Idea.
Buy 21,300 for 22,200 with a stop below 20,850. Entry price was filled on 23 June.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,786
Target price:
Protective stop:
Outlook
This index rebounded after forming a temporary bottom at 11,035. It is going to test its overhead 20EMA resistance at 11,850, and if price able to penetrate the 20EMA, we see price moving higher. Else, a correction could be followed. Stochastic is rising but MACD is bearish.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3814
Target price:
Protective stop:
Outlook
Price rebounded after forming a temporary price low at 6406. It is going to test its 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 rising but MACD is still bearish.
Trading Idea
Wait for better trading idea.
