Market News
- U.S. stocks extended recent gains to end higher on Thursday, with the Nasdaq rising more than 1% for a second straight day, as data showed the annual increase in U.S. producer inflation was the smallest in nearly three years.
- Wednesday’s CPI report showed U.S. consumer prices registered their smallest annual increase in more than two years, supporting the view that Fed will stop hiking rates after an expected 25 basis points rate increase later this month.
- The International Monetary Fund said that growth in China is slowing due to weaker private investment as well as slowing exports and reduced domestic demand.
Market Views
- Asian stocks rose further on Friday morning, capping off a positive week on signs of cooling U.S. inflation, with focus now turning to upcoming data offering more cues on the Chinese economy. Hang Seng index gained 44 points and Nikkei 225 index advanced 179 points.
- A decision on China’s key Loan Prime Rate is also due next week, after the People’s Bank cut the rate for the first time in eight months in June. The move had provided limited relief to Chinese stocks, which are now trading negative for the year.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,333
Target price:
Protective stop:
Outlook
Price hit its previous price high resistance zone for a third occasion two days ago. It could be forming a potential triple top chart pattern. We could see price moving lower to the low at 33,600. Stochastic is rising but MACD could be forming potential divergence warning.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 32,535
Target price:
Protective stop:
Outlook
Price is currently testing its overhead 20EMA resistance point, coinciding with the Fibonacci 50% correction point. As long as price is capped by the 20EMA, we see price moving lower to 31,780. 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: Short @ 15,180
Last: 15,578
Target price: 14,700
Protective stop: 15,300 filled
Outlook
Price penetrated its previous price high resistance zone and broke out from a triangle pattern two days ago. The rising 20EMA is acting as support. Stochastic is strong and bullish and MACD remains bullish too. We could see price testing 15,280 before its next rally.
Trading Idea.
Sell 15,180 for 14,700 with a stop above 15,300. Entry was filled on 5 July. Stop was filled on 12 July
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation: Long @ 7290
Last: 7425
Target price: 7420 filled
Protective stop: 7215
Outlook
Price is currently testing the 20EMA resistance point, coinciding with the Fibonacci 62% correction point and the support-turned-resistance zone. MACD remains bearish and Stochastic is weak. We are likely to see price moving lower again if it is capped by the 20EMA.
Trading Idea
Buy 7290 for 7420 with a stop below 7215. Entry was filled on 12 July. Profit was filled on 13 July
