Market News
- U.S. stocks were mixed after the close on Thursday, Dow Jones jumped for a ninth straight day after better-than-expected earnings results from drug maker Johnson & Johnson. It was the Dow’s best daily winning streak since 2017.
- Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, fell 3.11% in morning trade on Friday after posting its first quarterly net income decline in 4 years. Their business was affected by macroeconomic conditions which decreased demand for electronics.
- South Korea’s producer price index fell 0.2% year on year in June, lower than the 0.5% rise in May and the first month since November 2020 that the index has sunk into contraction territory. On the other hand, Japan’s core consumer price index climbed by 3.3% year on year in June.
Market Views
- Asia-Pacific markets were mixed on Friday morning as investors weighed more Chinese stimulus measures against weakness in technology stocks after chipmaking giant TSMC presented a bleak outlook for the year. Hang Seng index rose 136 points while Nikkei 225 index dropped 103 points.
- Hong Kong’s consumer price index grew 1.9% year on year in June, the second straight month that the inflation rate in the city has slowed. Hong Kong’s census and statistics department said the largest year on year increases were seen in prices of alcoholic drinks and tobacco, which climbed 18.7%.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 35,278
Target price:
Protective stop:
Outlook
Price remains strong and bullish after breaking out from a pennant continuation pattern that coincides with its previous price high resistance. We are likely to see price moving to 35,510. Stochastic is strong and MACD is bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,053
Target price:
Protective stop:
Outlook
Price rebounded from the Fibonacci 62% correction point, hinting that price may retest its previous price high at 19,597. It has to penetrate 19,597 for 20,180. Stochastic could be turning up again and MACD is moving higher.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Long @ 15,710
Last: 15,478
Target price: 16,000
Protective stop: 15,550 filled
Outlook
A doji candlestick pattern was formed two days ago, following with a huge bearish candlestick pattern. We are likely to see price testing the 20EMA at 15,300 in the next couple of days. Stochastic is falling and there is a bearish MACD crossover.
Trading Idea.
Buy 15,710 for 16,000 with a stop below 15,550. Entry and stop orders were filled on 20 July.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7651
Target price:
Protective stop:
Outlook
Price continues its upward momentum after breaking out from a sideway consolidation zone. We are likely to see price testing 7682, the Fibonacci 200% projection level that coincides with its previous price high. We could see a price correction when price testing 7682. Stochastic is rising and MACD remains bullish.
Trading Idea
Wait for better trading idea
