Market News
- Wall Street’s three major averages closed lower on Tuesday with the Dow leading declines as Treasury yields rose along with oil prices and investors assessed prospects for the Federal Reserve’s interest rate path.
- Data on Tuesday showed orders for U.S. factory goods declined 2.1% in July, ending a four-month streak of gains. Goldman Sachs lowered its estimate for the chance of a U.S recession in the next 12 months to 15% from 20%.
- Sentiment towards local stocks was aided by comments from BOJ board member Hajime Takata, who reiterated that BOJ is likely to keep its ultra-loose policy in the coming months, to further cement higher inflation and wage growth.
Market Views
- Asian stocks were mixed on Wednesday morning amid continued concerns over an economic slowdown in China, while Japanese markets outperformed their peers as Bank of Japan members reiterated the need for easy monetary policy. Hang Seng index dropped 145 points while Nikkei 225 index rose 225 points.
- Fears of a Chinese economic slowdown persisted after the country released mixed readings on business activity this week. Focus is now on key trade data, due on Thursday, for more cues on the country, with investors also growing impatient with Beijing’s pace of stimulus support.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 34,645
Last: 34,624
Target price: 35,000
Protective stop: 34,580
Outlook
This index formed a bearish engulfing candlestick pattern after being capped by the declining trendline. Price could retrace to the 34,430 before the next directional movement. Stochastic is moving higher. MACD remains in a bullish crossover.
Trading Idea
Buy at 34,645 for 35,000 with a stop below 34,580. Entry was filled on 5 September.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,285
Target price:
Protective stop:
Outlook
Price was capped by the Fibonacci 62% correction point. It moved and closed below the 20EMA. It could move lower to test its previous low at 17,554 again. Stochastic could be turning down. MACD is bullish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 15,410
Last: 15,480
Target price: 15,140
Protective stop: 15,480 filled
Outlook
Price broke and closed above the falling trendline that formed since July 2023. It penetrated and closed above the support-turned-resistance zone as well. We are likely to see price moving higher to 15,930 if it stay above 15,390. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Sell 15,410 for 15,140 with a stop above 15,480. Entry was filled on 30 August. Stop was filled on 1 September
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7408
Target price:
Protective stop:
Outlook
Price was capped by the Fibonacci 62% correction point. It could be heading lower to its previous low support zone at 7225. Stochastic is near to the overbought zone but MACD remains bullish at the moment.
Trading Idea
Wait for better trading idea
