Market News
- Wall Street declined after a choppy session on Tuesday, with geopolitical tensions flaring after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan as China condemned the visit as a threat to peace and stability.
- Foreign Ministry spokesperson Hua Chunying tweeted that Pelosi’s visit was a major political provocation, while a spokesperson for the People’s Liberation Army’s Eastern Theatre Command said it would conduct a series of joint military operations around the Taiwan Island from the evening of August 2.
- The first Ukrainian ship that bound for Lebanon to carry grain through the Black Sea since the Russian invasion left the port of Odesa on Monday under a safe passage deal, offering some hope in the face of a deepening global food crisis.
Market Views
- Shares in Asia were mostly higher on Wednesday despite geopolitical tensions intensifying between the U.S. and China over U.S. House Speaker Nancy Pelosi’s visit to Taiwan. Hang Seng index rose 10 points and Nikkei 225 index gained 146 points.
- Oil futures edged up less than 1% on Tuesday ahead of a meeting of OPEC+ producers this week that may not lead to a further boost in crude supply amid concerns a possible global recession could limit energy demand.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,486
Target price:
Protective stop:
Outlook
An evening star reversal candlestick pattern was formed after price rallied to the Fibonacci 161% projection level. This could be a hint that price could take a rest. A correction to the 20EMA at 31,960 is likely. Stochastic is at the overbought region and MACD is moving down
Trading Idea
Sell 32,600 for 32,000 with a stop above 33,005.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,714
Target price:
Protective stop:
Outlook
Price was capped by the falling 20EMA resistance point earlier. It further violated its recent price low support zone as well. This index could be heading lower to the next support zone at 19,180. Stochastic is falling and MACD is bearish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,904
Target price:
Protective stop:
Outlook
Price is currently trading at its previous price high resistance zone. A Spinning Top candlestick pattern was seen after a Doji candlestick pattern, showing the price rejection at this resistance level. We are likely to see price correction to 12,450 in the next few days. Stochastic is in the overbought region and MACD is falling
Trading Idea
Sell 12,960 for 12,500 with a stop above 13,160.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4097
Target price:
Protective stop:
Outlook
Price retraced and formed an Evening Star reversal candlestick pattern that hints at a possible correction to 4000. Stochastic is at the overbought region and had a bearish crossover. MACD is falling as well.
Trading Idea
Wait for better trading idea.
