Market News
- U.S. stocks closed slightly lower on Tuesday, ending a multi-session rally in which the equities market bounced back from a steep sell-off driven by recession fears amid few market-moving catalysts ahead of the Jackson Hole Economic Symposium, set to get under way on Thursday.
- On Thursday, representatives from central banks around the globe are expected to converge in Jackson Hole, Wyoming, for their annual Economic Symposium, at which U.S. Federal Reserve Chair Jerome Powell is expected to deliver remarks on Friday.
- The Labor Department is expected to release preliminary benchmark revisions to its employment data for the 12 months through March. A significant downward revision to the data could potentially affect the data-dependent Fed’s policy path.
Market Views
- Asia-Pacific markets fell on Wednesday morning after U.S. benchmark indexes, the S&P500 and the Nasdaq Composite, snapped an eight-day winning streak overnight. Hang Seng index fell 135 points and Nikkei 225 index dropped 322 points.
- July will be the last month of trade data recorded before the Bank of Japan’s move to raise interest rates at the end of July, which caused the yen to strengthen dramatically. A weaker yen benefits Japanese exporters and trading houses, heavyweights on the Nikkei 225 and whose rise has been instrumental in lifting the index to its record highs.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 40,875
Target price:
Protective stop:
Outlook
This index is strong and bullish as it is trading above its rising 20EMA. Price is likely to reach its overhead resistance of 41,020 in the coming session. Stochastic has been at the overbought region for extended period. MACD remains bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 17,411
Target price:
Protective stop:
Outlook
Price formed an inverted head and shoulder reversal pattern, hinting at potential reversal ahead. It retested its neckline this morning, and we are likely to see price moving higher to 18,180. Both Stochastic and MACD are bullish.
Trading Idea
Buy 17,360 for 18,000 with a stop below 17,170
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 19,530
Last: 19,722
Target price: 19,200
Protective stop: 19,630 triggered
Outlook
Price could have formed a possible price top at 19,832. It unable to create a new higher high and form a lower high instead. Both Stochastic and MACD are giving potential divergence warning. We are likely to see price breaking the 20EMA to move lower.
Trading Idea
Sell 19,530 for 19,200 with a stop above 19,630. Entry and stop orders were filled on 19 Aug
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,363
Target price:
Protective stop:
Outlook
Price was capped by its previous price high resistance zone. It could be forming a potential head and shoulder reversal chart pattern. Stochastic is falling and MACD is giving potential divergence warning. We could see price moving lower.
Trading Idea
Sell 18,410 for 18,130 with a stop above 18,470
