Market News
- Overnight in Wall Street, Dow Jones dropped 0.42%, while S&P 500 and Nasdaq Composite gained 0.16% and 1.75% respectively as gains in the Technology, Consumer Services and Consumer Goods sectors led shares higher while losses in the Oil & Gas, Utilities and Basic Materials sectors led shares lower.
- A possible recession caused by monetary tightening despite a possible rolling back of some U.S. tariffs on Chinese goods was the main concern of investors. A looming energy crisis in Europe amid Russia’s invasion of Ukraine, and threats to company earnings are on investors’ radars too.
- The Reserve Bank of Australia announced on Tuesday an interest rate hike by 50 basis points to 1.35%, in line with market expectations. The Fed’s June meeting due later in the day will be watched closing, which is almost certain to sound hawkish.
Market Views
- Asia Pacific stocks declined as investors’ fears deepened that the continent is leading the world into recession, while oil and European equity futures attempted to steady after a slide. Hang Seng index declined 347 points and Nikkei 225 index slumped 333 points.
- Investors are nervous about continuity of supply after the Nord Stream pipeline, which carries Russian gas to Germany, shuts for ten days for maintenance from July 11.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 30,800
Last: 30,934
Target price: 29,700
Protective stop: 31,150 Triggered
Outlook
Price is currently trading within a range in between 30,420 and the 20EMA, which is acting as resistance point that coincides with the Fibonacci 62% correction point. Stochastic could be falling soon and MACD remains bearish. A directional movement will be seen once either end breaks.
Trading Idea
Sell 30,800 with a stop above 31,150 for 29,700. Entry was filled on 1 July. Stop was triggered on 5 July.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 21,546
Target price:
Protective stop:
Outlook
Price was resisted by its previous resistance price zone, which is also the Fibonacci 62% correction point. The 20EMA will be the first support level at 21,530. If price can sustain, we see price rebounding to its high again, else, a correction to 20,770 will be followed. Stochastic is falling and MACD is bullish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,786
Target price:
Protective stop:
Outlook
Price rebounded overnight after retesting its previous low support zone. It is testing its overhead 20EMA resistance point at 11,772. A penetration of this 20EMA will likely to bring price higher to 12,227. Stochastic is rising and MACD is bullish.
Trading Idea
Sell 11,900 with a stop above 12,260 for 11,150.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3830
Target price:
Protective stop:
Outlook
Price was resisted by the 20EMA resistance point, which is also near to the Fibonacci 50% correction point. A failure to move above this resistance point will bring price lower to 3740. Stochastic is rising and MACD is trading at the zero line.
Trading Idea
Wait for better trading idea.
