Market News
- Wall Street ended sharply higher on Thursday after a blowout forecast from Nvidia sent the chipmaker’s stock soaring and fueled a rally in AI-related companies, while investors watched for signs of progress in U.S. debt ceiling talks.
- Nvidia Corp soared 24% to a record high close after the world’s most valuable chipmaker forecast quarterly revenue 50% higher than estimates and said it was ramping up supply to meet demand for its artificial-intelligence (AI) chips.
- U.S. President Joe Biden and Republican lawmaker Kevin McCarthy on Thursday were edging close to a deal, with the parties just $70 billion apart on discretionary spending, Reuters reported, citing a source familiar with the talks.
Market Views
- Asia stocks were mixed on Friday, apart from standout gains in Japan, as an artificial intelligence rally took a breather and as time ticked out on high-stakes talks to avoid a U.S. debt default. Hang Seng index fell 369 points while Nikkei 225 index gained 190 points.
- May data on Friday showed inflation slowing to 3.3% in Tokyo, a decent proxy for the nation, which means it’s been comfortably above the Bank of Japan’s 2% target for a year now.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,720
Target price:
Protective stop:
Outlook
Price is currently sitting at its resistance-turned-support zone. A potential Doji candlestick pattern is formed at this support zone, hinting at possible rebound ahead. Stochastic is near to the oversold zone and MACD remains bearish.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Short @ 19,840
Last: 18,516
Target price: 18,850 Filled
Protective stop: 19,500
Outlook
Price has been diving for a fourth straight day after breaking out from a sideway consolidation zone. It is currently trading near to the Fibonacci 161% projection level and could be due for a short rebound. Stochastic is at the oversold zone but MACD remains bearish.
Trading Idea.
Sell 19,840 for 18,850 with a stop above 20,000. Entry was filled on 22 May. Shift stop lower to 19,500. Profit order was filled on 25 May.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,902
Target price:
Protective stop:
Outlook
Price is currently ranging between its recent price top and the 20EMA support. If price could not penetrate above this price high resistance zone, we are likely to see a correction to 13,200. Stochastic is at the overbought zone. MACD could be forming a potential divergence warning.
Trading Idea
Sell 13,960 for 13,250 with a stop above 14,000.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation: Short @ 7772
Last: 7567
Target price: 7670 Filled
Protective stop: 7820
Outlook
Price was resisted by its overhead 20MA resistance point. It further broke down a triangle consolidation pattern and is currently sitting at the Fibonacci 50% correction point. Stochastic is falling and MACD remains bullish
Trading Idea
Sell 7772 for 7670 with a stop above 7820. Entry order was filled on 18 May. Profit order was filled on 25 May.
