- Dow Jones experienced an impressive rally on Thursday, recording a surge of over 300 points, the highest one-day increase in more than five weeks. This substantial gain is chiefly attributed to the strength of the U.S. consumer sector, as reflected in recent retail sales data.
- U.S. retail sales have consistently displayed robust growth, with data showing a steady rise for the fifth consecutive month in August. Sales rose by 0.6%, despite concerns over a potential deceleration following Amazon’s Prime Day sales event in July and the Fed’s benchmark interest rate hitting its highest level in 22 years.
- Gold prices gained on Friday as the dollar eased against the yuan after promising China economic data boosted recovery hopes in the world’s top bullion consumer, although the possibility of further U.S. interest rate hikes kept investors on edge.
- Asian stocks rose sharply on Friday as China rolled out more measures to support economic growth, while markets bet that Fed will hold interest rates next week despite strong readings on inflation. Hang Seng index advanced 188 points and Nikkei 225 index jumped 364 points.
- Data released on Friday showed Chinese industrial production and retail sales grew more than expected in August. But fixed asset investment declined, while new home sales also slumped, indicating that large portions of Asia’s largest economy still remained under pressure.
Dow Jones Index
(CFD Symbol: US30)
Recommendation: Short @ 34,720
Target price: 34,100
Protective stop: 34,770 filled
This index broke and closed above the declining trendline last night. Price could retrace to the 34,770 before the next rally. Stochastic is rising and MACD has turned bullish.
Sell 34,720 for 34,100 with a stop above 34,770. Entry was filled on 13 Sept and stop order was filled on 14 Sept
Hang Seng Index
(CFD Symbol: HK50)
Price was capped by the falling 20EMA. It could be consolidating within a flag pattern. Stochastic is still weak and MACD remains bearish. These could increase chances of price breaking down the flag to move lower.
Sell 18,240 for 17,660 with a stop above 18,380
Nasdaq 100 Index
(CFD Symbol: USTec)
Recommendation: Long @ 15,270
Target price: 15,400
Protective stop: 15,280 filled
Price rebounded after being supported by the rising 20EMA. We are likely to see price continuing to move higher if it penetrate above 15,630. Stochastic is rising and MACD is bullish.
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. Break even was filled on 13 Sept
FTSE 100 Index
(CFD Symbol: UK100)
Recommendation: Long @ 7435
Target price: 7620 filled
Protective stop: 7440
Price broke out from a flag continuation pattern. It further broke out a declining trendline that formed since Feb 2023. Price could retest the trendline before the next rally. Stochastic is at the overbought zone and MACD is bullish.
Buy 7435 for 7620 with a stop below 7360. Entry was filled on 8 Sept. Shift stop higher to 7440 to set break even. Target was filled on 14 Sept