Market News
- All three major indexes slumped on Thursday with Nasdaq Composite fell deeper into correction territory as Meta became the latest tech company to offer a forecast that didn’t quite live up to investors’ expectations.
- U.S. GDP expanded by 4.9% annualized in the third quarter, beating a Dow Jones forecast for 4.7% growth. That expansion rate is also up from the 2.1% seen in the second quarter. This is the latest sign of economic resiliency despite the Federal Reserve’s moves to tighten monetary policy to tame inflation.
- China’s industrial profits fell in the first nine months from a year earlier, according to data released by the government. Profits at industrial firms shrank by 9% in the January to September period from a year earlier, following an 11.7% profit year on year fall in profits for the first eight months.
Market Views
- Asia-Pacific markets attempted a rebound on Friday morning, with Australia stocks bouncing from a one-year low in the previous session as investors continue to digest more inflation data. Hang Seng index jumped 203 points and Nikkei 225 index rose 471 points.
- Australia’s producer prices climbed at a quicker pace during the third quarter. The country’s PPI recorded 1.8% climb quarter-on-quarter, much hotter than the prior quarter’s 0.5% increase. Year-on-year it showed 3.8% growth, a tad cooler than a prior reading of 3.9%.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 32,864
Target price:
Protective stop:
Outlook
Price broke below the support zone which has now become a resistance zone after violating the triangle pattern yesterday. The 20EMA is acting as resistance. It is now testing the resistance zone. We are likely to see price continuing to move lower if it capped by this resistance zone.
Trading Idea
Sell now 32,850 for 32,590 with a stop above 33,030
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,213
Target price:
Protective stop:
Outlook
This index is currently moving within a rectangle sideway consolidation zone. It has to penetrate above the 20EMA to move higher to 18,180. Stochastic could be turning up but MACD remains bearish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Long @ 14,600
Last: 14,207
Target price: 14,820
Protective stop: 14,540
Outlook
Price violated the support zone of 14,430 and formed a temporary bottom at 14,039. It has to penetrate the 20EMA and formed higher highs and higher lows to move higher again. Else, we will see price moving lower to 14,890. Stochastic is at the oversold zone and MACD remains bearish.
Trading Idea
Buy 14,600 for 14,820 with a stop below 14,540. Entry and stop were filled on 26 Oct
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 14,737
Target price:
Protective stop:
Outlook
Price retested its previous low support zone at 14,630. It has to penetrate its recent high of 14,930 to be bullish again. A violation of its recent low support zone will hint for further downside. Stochastic is at the oversold zone and MACD remains bearish.
Trading Idea
Wait for better trading idea
