Market News
- Dow Jones jumped 366 points, notching a seventh straight positive session on Tuesday for its longest string of gains since March 2021, as gains in the Oil & Gas, Technology and Telecoms sectors led shares higher.
- Headline U.S. retail sales data came in below forecasts, but core sales which exclude food, fuel and building materials, rose a solid 0.6% in June and had economists lifting GDP forecasts. The numbers are not adjusted for inflation; the consumer price index rose 0.2% for the month, indicating that real sales were about flat.
- Dovish remarks from a European Central Bank policymaker boosted bonds and dragged the euro lower. Hotter-than-expected inflation lifted the New Zealand dollar a little and stoked some market nerves ahead of British CPI due later in the day.
Market Views
- Asian markets were mixed on Wednesday morning after data released overnight spurred increased bets that Fed was close to ending its current rate hike cycle, while Chinese markets continued to lag on a worsening economic outlook. Hang Seng index slipped 233 points while Nikkei 225 index rose 275 points.
- Chinese officials and local media reports said that the government will roll out more stimulus measures in the coming days, after data showed that China’s economy barely grew in the second quarter.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,960
Target price:
Protective stop:
Outlook
Price broke out from a pennant continuation pattern yesterday with a strong bullish candle. It penetrated its previous price high as well. We are likely to see price retracing to 34,640, before price resuming its next rally. Stochastic is at the overbought zone and MACD remains bullish.
Trading Idea
Buy 34,640 for 35,170 with a stop below 34,460
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 32,766
Target price:
Protective stop:
Outlook
Price has moved above the 20EMA after rebounding from the low at 31,780. The key Fibonacci 62% resistance point is crucial at the moment. Price can retest its previous high if it able to surpass 33,040, else, we are likely to see price testing its low again. Stochastic is rising but MACD remains bearish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 15,823
Target price:
Protective stop:
Outlook
This index is strong and bullish as price is trading far above the 20EMA support. It further penetrated its recent price high, suggesting the strong upward momentum. Stochastic is strong and bullish and MACD is bullish too.
Trading Idea.
Buy 15,710 for 16,000 with a stop below 15,550.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7455
Target price:
Protective stop:
Outlook
Price is currently consolidating within a rectangle consolidation zone. There is high chance that price could break out the rectangle and the 20EMA to move higher. Stochastic is rising and MACD is bullish.
Trading Idea
Buy 7395 for 7595 with a stop below 7370
