Market News
- US three main indexes closed lower after choppy trading on Thursday as losses in healthcare stocks eclipsed gains in Cisco and energy stocks, while upbeat economic data kept alive fears of interest rates remaining higher for longer.
- Higher oil prices lifted shares of Exxon Mobil and Chevron by 1.9% to 1.7% respectively, as commodities were helped by hopes that China’s central bank was seeking to bolster the property market and wider economy.
- Minutes from the Fed’s July meeting released on Wednesday showed most policymakers prioritizing the battle against inflation, adding to uncertainty about the central bank’s interest rate path.
Market Views
- Asian stocks slipped on Friday morning amid persistent fears of rising U.S. interest rates, although signals of more Chinese stimulus measures helped local shares mark some gains. Hang Seng index dropped 179 points and Nikkei 225 index fell 60 points.
- The People’s Bank of China (PBOC) said that it will continue to pump up liquidity conditions and support slowing economic growth in the country. The move likely heralds a cut in the bank’s loan prime rate next week, which is expected to further loosen monetary conditions in the country.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 35,480
Last: 34,499
Target price: 34,820 filled
Protective stop: 35,140
Outlook
This index is currently sitting at the Fibonacci 62% correction point, coinciding with the resistance-turned-support zone. Stochastic is near to the oversold zone and MACD is bearish. Price could rebound to test the 20EMA if it stay above the support level.
Trading Idea
Sell 35,480 for 34,820 with a stop above 35,700. Entry was filled on 28 July. Shift stop lower to 35,140. Profit was filled on 16 August.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,099
Target price:
Protective stop:
Outlook
Price formed a temporary bottom at 17,870. It could rebound to the 20EMA resistance point before a next wave of downward movement. Stochastic is at the oversold zone and a bullish crossover is likely. MACD is bearish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,702
Target price:
Protective stop:
Outlook
Price has retraced to its previous low support zone. It could rebound to the 20EMA resistance point at 15,150 if it able to stay above the support level. Stochastic is at the oversold zone and MACD is bearish.
Trading Idea
Wait for better trading idea
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7282
Target price:
Protective stop:
Outlook
The sharp price decline has brought price lower to its previous low support zone. Price could rebound to the 20EMA resistance point if it able to sustain above this support zone. Stochastic is at the oversold zone and MACD is bearish.
Trading Idea
Wait for better trading idea
