Market News
- S&P 500 and Nasdaq reached their highest closes in 14 months on Tuesday after data showed consumer prices rose modestly in May, boosting bets that Fed will not raise interest rates on Wednesday.
- U.S.-listed shares of Chinese companies rose after China’s central bank lowered its short-term lending rate for the first time in 10 months. Alibaba Group gained 1.9% and JD.com jumped 3.5%.
- Economists on Wall Street are warning weakness in China’s property market could be a drag on the economy for years to come as they see persistent weaknesses in the property sector, mainly related to lower-tier cities and private developer financing, and believe there appears no quick fix for them.
Market Views
- Asia-Pacific markets were mixed on Friday as the inflation in the U.S. rose at a 4% annual rate in May, the lowest in two years, giving room for Fed to pause and skip a rate hike when they meet later this week. Hang Seng index was down 14 points while Nikkei 225 index rose 264 points.
- Japan’s Nikkei cleared fresh 33-year highs as sentiment towards local stocks was largely supported by expectations that the Bank of Japan will maintain its ultra-loose policy this Friday due to signs of resilience in the Japanese economy and a strong first quarter earnings season.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 33,550
Last: 34,120
Target price: 34,120 Filled
Protective stop: 33,290
Outlook
Price tested its previous price high resistance zone as expected after being supported by the rising 20EMA. Stochastic is at the overbought zone while MACD remains bullish. We could see potential price correction to 33,600.
Trading Idea
Buy 33,550 for 34,120 with a stop below 33,290. Entry was filled on 7 June. Profit order was filled on 13 June.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Short @ 19,280
Last: 19,491
Target price: 18,750
Protective stop: 19,520
Outlook
Price managed to stay above the 20EMA, keeping the upward momentum intact. However, it is trading near to the key Fibonacci 62% correction point at 19,760. There is a strong resistance at 20,260 as well. Stochastic is at the overbought zone and MACD remains bullish.
Trading Idea.
Sell 19,280 for 18,750 with a stop above 19,520. Entry was filled on 8 June. Stop loss was filed on 13 June.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,896
Target price:
Protective stop:
Outlook
Price created a price high at 14,950 last night. It has to further penetrate this high for more upside, else, we could see price retrace to the 20EMA at 14,330. The 20EMA is acting as key support to keep the uptrend intact. Stochastic is at the overbought region but there is divergence warning given from MACD.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7580
Target price:
Protective stop:
Outlook
Price is capped by the falling 20EMA resistance point. As long as price moves below the 20EMA, we see price testing its previous low at 7437. A bearish Stochastic crossover is likely and MACD remains bearish.
Trading Idea
Wait for better trading idea.
