Market News
- The Nasdaq dipped while Dow Jones and S&P 500 were flat due to the surge on benchmark U.S. Treasury on Tuesday as robust economic data and strong third-quarter earnings suggested the Federal Reserve may keep policy tight for longer than expected.
- Chip shares came under pressure after President Joe Biden’s administration announced plans to halt shipments to China of more advanced artificial intelligence chips.
- Consensus-topping retail sales data along with solid profit beats from Bank of America and Goldman Sachs added to a growing mountain of evidence that the U.S. economy is chugging along despite the Fed’s inflation-fighting interest rate hikes.
Market Views
- Asian shares moved in a tight range on Wednesday as growing concerns over a spillover in the Israel-Hamas war dented risk appetite, largely offsetting positive data that showed China’s economy grew more than expected. Hang Seng index dropped 18 points and Nikkei 225 index slid 78 points.
- Government data showed that China’s gross domestic product grew 4.9% in the three months to September 30, more than expectations for growth of 4.4%. But the figure was weaker than the 6.3% growth seen in the prior quarter.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 33,750
Last: 33,973
Target price: 33,270
Protective stop: 33,840 filled
Outlook
Price broke and closed above its previous price high resistance point. It was supported by the rising 20EMA as well. We think that price may continue its upward strength and to move higher to 34,220. Stochastic is turning up and MACD remains bullish.
Trading Idea
Sell 33,750 for 33,270 with a stop above 33,840. Entry was filled on 13 Oct and stop was filled on 16 Oct
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,773
Target price:
Protective stop:
Outlook
Price has moved back inside the channel. It is currently sitting at the Fibonacci 50% correction point as well as the 20EMA. We could see price moving higher to 18,620 if it stay above the 20EMA. MACD is bullish too.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 15,200
Last: 15,098
Target price: 14,900
Protective stop: 15,140
Outlook
Price was rejected by the support-turned-resistance zone. The 20EMA is flat now, suggesting potential strong impulsive movement ahead. As long as price move below the resistance, there is chance for price moving lower again.
Trading Idea
Sell 15,200 for 14,900 with a stop above 15,250. Entry was filled on 13 Oct. Move stop lower to 15,140 to protect profit.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7683
Target price:
Protective stop:
Outlook
Price is going to test its key resistance zone of 7710 soon. It has to close above this zone to breakout the sideway zone and to move higher to 7910, else, we will see price testing its low again. Stochastic is at the overbought zone and MACD is still bullish.
Trading Idea
Wait for better trading idea
