Market News
- U.S. stocks ended higher Thursday as an upbeat sales forecast from Cisco Systems helped to lift the technology sector, while data showed the economy remained relatively strong. The Dow rose 18 points, S&P 500 was up 9 points and Nasdaq Composite gained 27 points.
- Inflation in Sri Lanka will peak of just above 60% in September, central bank governor Nandalal Weerasinghe told CNBC’s “Squawk Box Asia”. The central bank held rates steady Thursday on cautious optimism on the defaulted economy.
- Capital Economics senior China economist Julian Evans-Pritchard said in a note on Thursday that prospects of a post-Omicron rebound for China were poor, especially against a backdrop of a spiraling housing market and slow credit appetite despite policy easing.
Market Views
- Asia-Pacific markets were higher on Friday morning against a muted Wall Street looking to revive its recent market rally. Hang Seng index was up 97 points as there was positive action from Tencent and Meituan, both in the news this week over a denied Tencent offload of Meituan. Nikkei 225 index rose 19 points.
- ANZ Research stated that a slowdown in the global semiconductor cycle is underway as electronics manufacturing PMI suggests that while activity is still in expansionary mode, it is past its peak and will slow down further
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,950
Target price:
Protective stop:
Outlook
Price tested its overhead resistance zone and was unable to penetrate above it. A potential bearish Harami candlestick pattern was formed two days ago, but we have yet to see a confirmation candle. There is divergence warning given from the MACD histogram. We could see price correcting to 20EMA if price close below 33,820.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 20,100
Last: 19,859
Target price: 21,000
Protective stop: 19,650
Outlook
Price has been moving within a consolidation zone. It rebounded from the lower boundary of the consolidation zone, and we are likely to see price moving higher to its upper boundary at 20,360. There is divergence warning given from the MACD. Stochastic is rising as well.
Trading Idea.
Buy 20,100 for 21,000 with a stop below 19,650. Entry order will filled on 16 Aug.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,481
Target price:
Protective stop:
Outlook
Price is currently trading at its Fibonacci 62% resistance point. An evening Doji star reversal candlestick pattern was formed two days ago, and we would like to see a follow-through confirmation candle for its decline to the 20EMA support. Stochastic is in the overbought region. MACD is giving divergence warning.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4276
Target price:
Protective stop:
Outlook
Price was being capped at the Fibonacci 62% resistance point, which is also the previous high resistance zone. MACD has been giving divergence warning that hints at possible price high. We are likely to see price correcting to 20EMA at 4170.
Trading Idea
Wait for better trading idea.
