Market News
- U.S. stocks closed higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week.
- Traders have priced in a 73% chance of the U.S. central bank holding interest rates at the current 5%-5.25% range during its monetary policy meeting on June 13-14, according to CME Group’s Fedwatch tool. However, they see a 50% chance of a rate hike in July.
- The U.S. Labour Department is due to release inflation data on June 13, the first day of the Fed meeting. The numbers are expected to show consumer prices cooled slightly in May but core prices remained sticky.
Market Views
- Asian markets rose after the S&P 500 hit a new high for 2023 and the Dow Jones saw a third straight day of gains. Hang Seng index gained 46 points and Nikkei 225 index jumped 552 points.
- First-time filings for unemployment benefits totalled 261,000 for the week ended June 3, up 28,000 from the previous period and well ahead of the Dow Jones estimate of 235,000, the Labour Department reported Thursday.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 33,550
Last: 33,789
Target price: 34,120
Protective stop: 33,290
Outlook
The index rebounded strongly on 2 June. It managed to stay above the rising 20EMA that hints at potential upside. We are likely to see price testing its previous price high resistance zone at 34,120. Both Stochastic and MACD are rising.
Trading Idea
Buy 33,550 for 34,120 with a stop below 33,290. Entry was filled on 7 June.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Short @ 19,280
Last: 19,299
Target price: 18,750
Protective stop: 19,520
Outlook
The price rebound brought price to its support-turned-resistance level around 18,430, which is also the Fibonacci 50% correction point. We should see potential selling pressure at this level, which could result in a price correction to 18,740.
Trading Idea.
Sell 19,280 for 18,750 with a stop above 19,520. Entry was filled on 8 June.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,476
Target price:
Protective stop:
Outlook
Price formed a temporary price top at 14,662. It is currently supported by a key support level at 14,212. We are likely to see a sharp correction to 13,520 if price violates 14,212. Stochastic remains in overbought region for extended periods. MACD remains bullish.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7612
Target price:
Protective stop:
Outlook
Price is testing its overhead 20EMA resistance point at 7638. It is currently consolidating within a pennant chart pattern, hinting at a possible upward breakout to 7744. Stochastic is rising but MACD remains bearish.
Trading Idea
Wait for better trading idea.
