Market News
- Wall Street’s three major indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Fed’s aggressive interest rate hikes.
- Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month, while U.S. consumer confidence increased to a near 1-1/2 year high in June.
- The U.S. is considering new restrictions on exports of artificial intelligence chips to China, according to the Wall Street Journal. The Journal reported the U.S. Commerce Department could stop shipments of chips made by Nvidia and other companies to customers in China as early as July.
Market Views
- Asia-Pacific markets rose on Wednesday morning as the region digests May inflation figures out of Australia and China releases its industrial profits for May. Hang Seng index was up 68 points and Nikkei 225 index gained 304 points.
- Australia’s weighted inflation rate for May came in at 5.6%, sharply lower than April’s figure of 6.8% and lower than the 6.1% expected by economists polled by Reuters.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 33,800
Last: 33,916
Target price: 33,270
Protective stop: 34,400
Outlook
Price formed a temporary bottom at 33,598, which coincides with the Fibonacci 50% correction point. However, we think that the rebound is likely to be capped at 34,200. Stochastic is likely to turn up and MACD remains bullish.
Trading Idea
Sell 33,880 for 33,270 with a stop above 34,000.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,137
Target price:
Protective stop:
Outlook
Price is testing the 20EMA resistance point, which is near to the resistance zone that coincides to the Fibonacci 50% correction point at 19,430. If price is unable to surpass this zone, we are likely to see price moving lower again. Stochastic is near to the oversold zone and MACD is bearish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,897
Target price:
Protective stop:
Outlook
Price created a price high at 15,282 on 16 June. It is supported by the 20EMA, but it has to breakout its overhead downtrend line for a test of its high. A violation of the 20EMA is likely to send price lower. Stochastic is falling but MACD remains bullish.
Trading Idea.
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7481
Target price:
Protective stop:
Outlook
Price rebounded and formed a hammer after testing its previous low support zone two days ago. There is potential divergence warning given from the MACD that hints at potential rebound. We are likely to see price testing 7553. Stochastic is near to the oversold zone and MACD remains bearish
Trading Idea
Wait for better trading idea.
