Market News
- S&P 500 and Nasdaq Composite registered record closing highs for a fourth session in a row on Thursday as technology shares extended their recent rally. Dow Jones, on the other hand, closed 65 points lower.
- The number of Americans filing new claims for unemployment benefits increased last week and another report showed producer prices unexpectedly fell in May, helping to keep alive hopes that an interest rate cut by the Federal Reserve may be on the horizon.
- The Fed on Wednesday projected only one rate cut this year, while its outlook in March included three quarter-percentage-point reductions.
Market Views
- Asia-Pacific markets fell on Friday as a rally on signs of cooling U.S. inflation wound down, with focus now turning to a Bank of Japan meeting where the central bank is widely expected to further tighten policy. Hang Seng index slumped 121 points and Nikkei 225 index was down 11 points.
- Chinese markets were the worst performers for the day, hit by new European Union tariffs against the country’s major electric vehicle makers. Fears of retaliatory measures from Beijing also dampened sentiment.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 38,618
Target price:
Protective stop:
Outlook
Price rebounded from its recent low support zone at 38,400. It was capped by its overhead resistance zone. With the bullish MACD and rising Stochastic, we are likely to see price penetrating its resistance zone to move higher to 39,000.
Trading Idea
Buy 38,600 for 38,810 with a stop below 38,550.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 18,056
Target price:
Protective stop:
Outlook
Price appears to rebound from its key support at 17,730. Stochastic is at the oversold zone and a bullish crossover is likely. These could increase chances of the stock price rebounding from this zone to move higher.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 19,608
Target price:
Protective stop:
Outlook
Price has been creating an all-time high at 19,660. It could be consolidating within a rising triangle pattern. Both MACD and Stochastic are rising. We could see price breaking out the triangle to move higher.
Trading Idea
Buy 19,540 for 19,800 with a stop below 19,450
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,314
Target price:
Protective stop:
Outlook
Price has been declining and forming lower highs and lower lows. It violated its support zone and let’s see if it can move back above this zone. We could see more downside if price is resisted at 18,320.
Trading Idea
Wait for better trading idea
