Market News
- S&P 500 ended higher on Tuesday and the Dow Jones notched a record-high close ahead of a much-anticipated quarterly report from Nvidia on Wednesday and economic data expected later in the week that could give clues about the path of interest rate cuts.
- Data on Tuesday showed U.S. consumer confidence rose to a six-month high in August, while consumers also became more anxious about the labor market after the unemployment rate jumped to near a three-year high of 4.3% last month.
- Investors will look to July Personal Consumption Expenditure data due on Friday for additional hints at the potential pace of rate cuts, and betting on an interest rate cut of either 25 or 50 basis points in September.
Market Views
- Asian stocks were mixed on Wednesday with technology-heavy indexes falling in anticipation of earnings from market darling Nvidia, while Australian stocks sank on a sticky inflation print. Hang Seng index fell 194 points while Nikkei 225 index rose 33 points.
- China’s economic impact of the tariffs is expected to be negative, investors feared the onset of a renewed trade war between China and the west, given that the U.S. and the European Union had also enacted similar tariffs earlier this year.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 40,840
Last: 41,286
Target price: 40,600
Protective stop: 40,930 triggered
Outlook
Price managed to stay above the rising 20EMA support, keeping the uptrend intact. We could see price making new high if it able to penetrate and close above 41,132. Stochastic is turning up and MACD remains bullish.
Trading Idea
Sell 40,840 for 40,600 with a stop above 40,930. Entry and stop orders were filled on 23 Aug
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 17,360
Last: 17,672
Target price: 17,672 filled
Protective stop: 17,400
Outlook
Price has been moving higher after forming an inverted head and shoulder reversal pattern. The 20EMA is rising, suggesting the bullish price trend. MACD remains bullish and Stochastic is rising. Price has to further penetrate 17,900 for more upside.
Trading Idea
Buy 17,360 for 18,000 with a stop below 17,170. Entry was filled on 21 Aug. Close order with profit now.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 19,730
Last: 19,565
Target price: 19,500
Protective stop: 19,810 triggered
Outlook
Price could be forming a potential falling wedge chart pattern after being supported at its daily support zone. Let’s wait for a chart pattern breakout to confirm the continuation of the bullish price trend. Stochastic is rising but MACD has turned bearish.
Trading Idea
Sell 19,730 for 19,500 with a stop above 19,810. Entry and stop orders were filled on 23 Aug
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 18,719
Target price:
Protective stop:
Outlook
Price is trading near to its previous price high resistance zone. It has to further penetrate and close above this zone for further upside, else, a correction could be likely as price is far away from the 20EMA. Stochastic is at the overbought zone and MACD remains bullish.
Trading Idea
Wait for better trading idea
