Market News
- Wall Street stocks ended lower on Tuesday as Oracle shares tumbled more than 13% after a weak forecast and surging oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week.
- Oil prices jumped more than 1%, building on a recent rally and stoking worries that sticky inflation could mean U.S. interest rates stay higher longer in the aftermath of strong economic data.
- Investors are awaiting August consumer price index data due on Wednesday and producer prices reading scheduled for Thursday to gauge the outlook for U.S. interest rates ahead of the Fed’s meeting on Sept. 20.
Market Views
- Asian markets moved in a flat-to-low range on Wednesday morning as investors awaited key U.S. inflation data, while Chinese property stocks logged strong gains as embattled developer Country Garden clinched more extensions on its debt payments. Hang Seng index dropped 37 points and Nikkei 225 index fell 76 points.
- Sentiment towards China remained largely negative, as a swathe of economic indicators for August painted a weak picture of Asia’s largest economy. This was coupled with a slow rollout of more stimulus measures from Beijing.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,606
Target price:
Protective stop:
Outlook
This index was capped by its overhead falling downtrend line. A doji candlestick pattern was formed last night. MACD remains bearish and a bearish crossover is likely. Price is likely to move lower to the next support zone at 34,020.
Trading Idea
Sell 34,720 for 34,100 with a stop above 34,770
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,955
Target price:
Protective stop:
Outlook
Price has been moving lower after being capped by the Fibonacci 62% correction point. It is currently consolidating within a flag pattern. We are likely to see price breaking down the flag pattern and to move lower to 17,660.
Trading Idea
Sell 18,220 for 17,660 with a stop above 18,280
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Long @ 15,270
Last: 15,292
Target price: 15,400
Protective stop: 15,280
Outlook
Price was capped by its support-turned-resistance zone. It broke down a flag continuation pattern and we are likely to see price continuing to move lower if it unable to penetrate the resistance zone. MACD remains bullish at the moment.
Trading Idea
Buy 15,270 for 15,540 with a stop below 15,220. Entry was filled on 8 Sept. Shift stop higher to 15,280 to set break even. Shift target lower to 15,400.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation: Long @ 7435
Last: 7502
Target price: 7620
Protective stop: 7440
Outlook
Price broke out from a flag continuation pattern. As long as it stay above the 20EMA, we could see price testing its previous resistance that coincides with the declining trendline. Stochastic is at the overbought region and MACD remains bullish.
Trading Idea
Buy 7435 for 7620 with a stop below 7360. Entry was filled on 8 Sept. Shift stop higher to 7440 to set break even.
