Market News
- Wall Street’s three major indexes ended modestly lower on Thursday in a choppy session as hawkish comments from a U.S. Fed official and data showing the labour market remained tight led some investors to worry about more aggressive interest rate hikes ahead.
- Data showed the number of Americans filing new claims for unemployment benefits fell last week, suggesting the labour market remained tight. A report on Wednesday detailed strong retail sales growth last month, indicating the economy has weathered rate hikes.
- St. Louis Federal Reserve President James Bullard said more tightening may be needed for the central bank to tame inflation as inflation remains unacceptably high, noting that policy isn’t “sufficiently restrictive” at current levels.
Market Views
- Asia Pacific markets inched higher as Japan’s core consumer price index for October rose 3.6% compared to a year ago, higher than expected and at the fastest pace in 40 years. Hang Seng index surged 275 points and Nikkei 225 index rose 47 points.
- Travel in Asia resumes and continues to gain momentum, especially after China’s recent announcement to reduce quarantine time for international travellers, JPMorgan says it remains bullish on the region’s travel industry.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,482
Target price:
Protective stop:
Outlook
This index is currently trading near its previous price high resistance zone. Price formed indecision candlestick patterns at this zone for the past few days. We are likely to see price retracting to the 20EMA at 32,715. Stochastic is in the overbought region and MACD is bullish.
Trading Idea
Sell 33,700 with a stop above 34,000 for 33,050.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,116
Target price:
Protective stop:
Outlook
This index has reached its support-turned-resistance price zone, coinciding with the Fibonacci 161% projection level. Price may retrace to 20EMA at 16,790 if it unable to break through this resistance zone. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea.
Sell 18,250 for 16,850 with a stop above 18,550.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,685
Target price:
Protective stop:
Outlook
Price managed to stay at its resistance-turned-support zone during this round of price correction. The 20EMA is acting as support at 11,420. If price able to sustain above the 20EMA, we see price moving higher again. Stochastic is still strong and MACD is bullish.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7363
Target price:
Protective stop:
Outlook
This index is currently consolidating within a flag pattern. Price reached its upper boundary of the flag pattern and we are likely to see price moving lower to the lower boundary at 7290. Stochastic is still strong and MACD is bullish.
Trading Idea
Wait for better trading idea.
