Market News
- U.S. stocks slid on Tuesday, as losses in the Consumer Services, Technology and Financials sectors led shares lower. Walmart, Salesforce and Nike were the contributors to the losses. Dow Jones fell 228 points, S&P 500 was down 45 points and Nasdaq Composite slid 220 points.
- Prices in Australia rose 6.1% in the second quarter compared to the same period a year ago, up from 5.1% in the first quarter of the year. Economists polled by Reuters saw inflation hitting 6.2%.
- The International Monetary Fund warned the world economy may soon be on the cusp of an outright recession. Monetary tightening, Europe’s energy shortages over Russia’s invasion of Ukraine and China’s property sector, and COVID curbs remain the headwinds to the global economic rebound.
Market Views
- Asia-Pacific shares were lower on Wednesday morning with Hong Kong stocks leading losses, as Australia’s inflation rose and investors looked forward to the Fed’s policy decision. Hang Seng index declined 319 points while Nikkei 225 index rose 28 points.
- Investors are also awaiting a key announcement from the Federal Reserve. The central bank will announce its latest interest rate decision on Wednesday afternooon. Markets widely expect a three-quarter percentage point increase in the benchmark rate.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 31,900
Last: 31,860
Target price: 32,600
Protective stop: 31,450
Outlook
Price is making attempts to stabilise at the resistance-turned-support zone, where the 20EMA also comes in at support at this zone. As long as price can stay above the 20EMA at 31,490, we think price can move higher to 32,965. MACD remains bullish and Stochastic is at the overbought region.
Trading Idea
Buy 31,900 for 32,600 with a stop below 31,450. Entry order was filled on 22 July.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,573
Target price:
Protective stop:
Outlook
Price was being capped by the falling 20EMA resistance point. A Shooting Star candlestick pattern was formed last night. As long as price moves below the 20EMA, we are likely to see price moving lower to 19,400. MACD is bearish and Stochastic is weak as well.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,250
Target price:
Protective stop:
Outlook
The price correction brings price lower to the resistance-turned-support zone, coinciding with the 20EMA support and the Fibonacci 50% correction point. If price can rebound from this support zone, we are likely to see price moving higher to 12,890. Both Stochastic and MACD remain bullish.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Long @ 3970
Last: 3948
Target price: 4070
Protective stop: 3895
Outlook
Price retraced to the 20EMA support, which is also the Fibonacci 38% correction point. We are likely to see price resuming its upward momentum to 4190 if price able to rebound from this support zone. Both Stochastic and MACD are bullish.
Trading Idea
Buy 3970 for 4070 with a stop below 3895. Entry order was filled on 22 July.
