- U.S. stocks surged on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline.
- Spiraling inflation initially led markets to price in a 100-basis-point hike in interest rates at the upcoming Fed meeting later this month, until some policymakers signaled a 75-basis-point increase.
- The Reserve Bank of Australia signaled the need for higher interest rates to contain rising inflation, even after recent rate hikes, as unemployment drops to its lowest level in nearly 50 years, according to minutes of its July policy meeting on Tuesday.
- Asia Pacific stocks advanced on Wednesday morning, following overnight Wall Street’s gains, as investors speculated that the worst of 2022’s equity rout is over. Hang Seng index rose 384 points and Nikkei 225 index gained 637 points.
- Oil prices fell slightly in early Asian trade on Wednesday, caught in a tug-of-war between supply fears due to Western sanctions on Russia and pressures on indications from central bankers that they will raise interest rates to combat inflation.
Dow Jones Index
(CFD Symbol: US30)
A Hammer reversal candlestick pattern was formed four days ago, creating a temporary bottom and point for a reversal ahead. Price has moved above the 20EMA and its recent price high resistance. Both MACD and Stochastic are rising, we are likely to see price continuing to move higher to 32,360.
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation: Short @ 20,490
Target price: 19,380
Protective stop: 20,800 triggered
Price rebounded after falling to its support zone. It is currently testing its overhead 20EMA at 21,140. We could expect a pullback occurs to 20,585 before the next directional movement. Stochastic is rising but MACD is bearish.
Sell 20,490 for 19,380 with a stop above 20,800. Entry order was filled on 15 July. Stop was triggered on 28 July.
Nasdaq 100 Index
(CFD Symbol: USTec)
Recommendation: Short @ 11,900
Target price: 11,150
Protective stop: 11,940 triggered
Price has been moving higher after penetrating above the 20EMA, which has now become the support level at 11,923. It moved above its recent price high resistance, and if price can sustain above this level, we see price moving higher. Stochastic and MACD are bullish and are rising.
Sell 11,900 with a stop above 12,260 for 11,150. Entry order was filled on 7 July. Lower stop to 11,940. Stop was triggered on 15 July.
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 3804
Target price: 3870 reached
Protective stop: 3770
Price is in a sideway consolidation. It broke above the upper boundary of the consolidation zone as well as the 20EMA. We are likely to see price continuing to move higher to 4072 if it able to stay above the upper boundary. Both Stochastic and MACD are bullish and rising.
Buy 3804 for 3870 with a stop below 3770. Entry order was filled on 15 July. Profit target was hit on 19 July.