Author: Shueh Ting Wong

Market News

• U.S. markets were closed for the Independence Day holiday, but U.S. futures were all lower ahead of Wednesday’s session. Traders will be watching closely for minutes from Fed’s June meeting, after Chairman Powell said last month to expect more rate hikes ahead.

• Data on Monday from the Institute of Supply Management showed U.S. manufacturing activity slumped in June to levels last seen during the initial wave of the COVID-19 pandemic in May 2020. Purchasing managers surveys showed a similar factory downturn in the euro zone.

• Euro zone government debt was steady, with Germany’s two-year Schatz yield, which tracks interest rate expectations, drifting around the 3.32% level, around its highest since early March, just before a U.S. regional banking crisis drove a flight into safe havens. Bond yields rise as prices fall.

Market Views

• Asian stocks fell on Wednesday, with Chinese markets under pressure from weak economic data and rumblings of a renewed trade war with the U.S., while anticipation of more cues from the U.S. Fed also kept risk appetite low. Hang Seng index fell 261 points and Nikkei 225 index dropped 95 points.

• China’s service sector activity remained in positive territory for a sixth straight month as the Caixin services purchasing managers index for June came in at 53.9, a slower rate of expansion than the 57.1 recorded in May.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 34,359

Target price:

Protective stop:

Outlook
Price started to retrace after trading near to its previous price high resistance zone. We could see price moving lower to the 20EMA at 34,020. Stochastic is weak. MACD remains bullish at the moment.

Trading Idea
Wait for better trading idea.

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 19,089

Target price:

Protective stop:

Outlook
Price was unable to penetrate its support-turned-resistance zone yesterday. A bearish candle was seen today. It moved below the 20EMA as well. Stochastic remains weak and MACD remains bearish. We are likely to see price moving lower to 18,015.

Trading Idea.
Sell 19,300 for 18,150 with a stop above 19,480.

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 15,185

Target price:

Protective stop:

Outlook
Price created a price high at 15,282 on 16 June. It has to penetrate this high for further upside. Both MACD and Stochastic could be giving potential divergence warning. We are likely to see price moving lower to 14,680 if it violates the 20EMA. 

Trading Idea.
Sell 15,180 for 14,700 with a stop above 15,300.

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7481

Target price:

Protective stop:

Outlook

The price rebound was capped by the falling 20EMA that suggest for a bearish downtrend. It has to penetrate above the 20EMA for more upside, else, we are likely to see price testing its previous low support zone at 7440. Stochastic is weak and MACD remains bearish.

Trading Idea
Wait for better trading idea.

Market News

• Dow Jones and S&P 500 advanced on Thursday as bank shares rallied after major lenders cleared the Fed’s annual stress test, while strong economic data stoked expectations of further interest rate hikes from the central bank.

• Stronger than expected economic data pushed Treasury yields higher and steered investors toward economically sensitive sectors as recession fears eased. But buyers shied away from some rate-sensitive growth sectors due to concerns the Fed would keep interest rates higher for longer.

• Data showed an unexpected weekly decline in the number of Americans filing new claims for unemployment benefits, and the U.S. GDP increased at a 2.0% annualized rate in the first quarter, up from the 1.3% pace reported previously.

Market Views

• Asian stocks slid on Friday as weak Chinese economic data and growing fears of U.S. interest rate hikes dented sentiment, although Chinese stocks benefited from some bargain buying and stimulus expectations. Hang Seng index fell 1 point and Nikkei 225 index dropped 175 points.

• Tokyo’s core consumer price index rose 3.1% in June year-on-year, maintaining levels above the Bank of Japan’s target for thirteen straight months.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation: Short @ 33,800

Last: 34,101

Target price: 33,270

Protective stop: 34,400 Filled

Outlook
Price formed a temporary bottom at 33,598, which coincides with the Fibonacci 50% correction point. However, we think that the rebound is likely to be capped at 34,200. Stochastic is likely to turn up and MACD remains bullish.

Trading Idea
Sell 33,880 for 33,270 with a stop above 34,000. Stop was filled on 29 June.

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 18,959

Target price:

Protective stop:

Outlook
Price was capped by the 20EMA resistance point. If price is unable to surpass 19,380, we are likely to see price moving lower to 18,010. Stochastic is near to the oversold zone but MACD is bearish and the fast line is turning down.

Trading Idea.
Wait for better trading idea.

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 14,962

Target price:

Protective stop:

Outlook
Price created a price high at 15,282 on 16 June. It rebounded after being supported by the 20EMA. As long as price stays above the 20EMA, we could see price moving higher to its high again. Stochastic is falling and MACD remains bullish.

Trading Idea.
Wait for better trading idea.

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7487

Target price:

Protective stop:

Outlook
Price rebounded from its previous low support zone. It has to penetrate the 20EMA at 7542 for more upside, else, we could see price falling to 7395. Stochastic is rising near to its oversold zone but MACD remains bearish.

Trading Idea
Wait for better trading idea.

Market News

• Wall Street’s three major indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Fed’s aggressive interest rate hikes.

• Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month, while U.S. consumer confidence increased to a near 1-1/2 year high in June.

• The U.S. is considering new restrictions on exports of artificial intelligence chips to China, according to the Wall Street Journal. The Journal reported the U.S. Commerce Department could stop shipments of chips made by Nvidia and other companies to customers in China as early as July.

Market Views

• Asia-Pacific markets rose on Wednesday morning as the region digests May inflation figures out of Australia and China releases its industrial profits for May. Hang Seng index was up 68 points and Nikkei 225 index gained 304 points.

• Australia’s weighted inflation rate for May came in at 5.6%, sharply lower than April’s figure of 6.8% and lower than the 6.1% expected by economists polled by Reuters.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation: Short @ 33,800

Last: 33,916

Target price: 33,270

Protective stop: 34,400

Outlook
Price formed a temporary bottom at 33,598, which coincides with the Fibonacci 50% correction point. However, we think that the rebound is likely to be capped at 34,200. Stochastic is likely to turn up and MACD remains bullish.

Trading Idea
Sell 33,880 for 33,270 with a stop above 34,000.

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 19,137

Target price:

Protective stop:

Outlook
Price is testing the 20EMA resistance point, which is near to the resistance zone that coincides to the Fibonacci 50% correction point at 19,430. If price is unable to surpass this zone, we are likely to see price moving lower again. Stochastic is near to the oversold zone and MACD is bearish.

Trading Idea.
Wait for better trading idea.

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 14,897

Target price:

Protective stop:

Outlook
Price created a price high at 15,282 on 16 June. It is supported by the 20EMA, but it has to breakout its overhead downtrend line for a test of its high. A violation of the 20EMA is likely to send price lower. Stochastic is falling but MACD remains bullish. 

Trading Idea.
Wait for better trading idea.

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7481

Target price:

Protective stop:

Outlook
Price rebounded and formed a hammer after testing its previous low support zone two days ago. There is potential divergence warning given from the MACD that hints at potential rebound. We are likely to see price testing 7553. Stochastic is near to the oversold zone and MACD remains bearish

Trading Idea
Wait for better trading idea.