Market News
- U.S. stocks rose on Tuesday, helped by optimism ahead of key inflation reports and as JPMorgan and other financial shares gained before earnings later this week. Dow Jones jumped 317 points, S&P 500 rose 29 points and Nasdaq Composite gained 75 points.
- U.S. consumer price data is due on Wednesday, while a producer prices report is due on Thursday. Several Fed officials said this week the central bank would likely need to raise rates further to curb inflation but that the end of its tightening cycle was getting close.
- South Korea’s seasonally adjusted unemployment rate inched up slightly to 2.6% in June, after hitting a joint-record low figure of 2.5% in May. Compared to the same period a year ago, unemployment fell by 0.4 percentage points and stood at 763,000 people in June.
Market Views
- Asian stocks were mixed on Wednesday morning amid speculation over peak U.S. interest rates ahead of key inflation data, while weak economic readings spurred a heavy dose of profit taking in Japanese markets. Hang Seng index gained 215 points while Nikkei 225 index dropped 183 points.
- Weak economic data from Japan triggered another round of profit taking in local stocks, as weaker-than-expected machinery orders, easing factory inflation and a rising unemployment rate raised questions over just how resilient the Japanese economy was.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,254
Target price:
Protective stop:
Outlook
Price rebounded with a bullish engulfing candlestick pattern after testing its previous low support zone. It moved and closed above the 20EMA. We could see price testing its resistance zone at 34,570 in the next few days. Stochastic is rising and MACD remains bullish.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,873
Target price:
Protective stop:
Outlook
Price is currently testing its overhead 20EMA resistance point at 18,970. It has to penetrate above this level for 19,365, else, we are likely to see price testing its low at 18,010. Stochastic remains weak and MACD remains bearish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 15,180
Last: 15,143
Target price: 14,700
Protective stop: 15,300
Outlook
Price created a price high at 15,282 on 16 June. The recent price correction was supported by the rising 20EMA. We could see price testing its high again if it able to maintain above the 20EMA. Stochastic is falling but MACD remains bullish.
Trading Idea.
Sell 15,180 for 14,700 with a stop above 15,300. Entry was filled on 5 July.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7298
Target price:
Protective stop:
Outlook
Price could have formed a bottom at 7225. We are likely to see price testing the 20EMA, which is also the Fibonacci 62% correction point at 7430, in the next couple of days. Stochastic is at the oversold zone but MACD remains bearish.
Trading Idea
Buy 7290 for 7420 with a stop below 7215.
