Category: CFD Indices

Market News

• Wall Street’s main indexes ended higher on Thursday as investors assessed the latest batch of economic data and as a surge in Treasury yields stalled ahead of a key inflation report. Dow Jones rose 116 points, S&P 500 was up 25 points and Nasdaq Composite gained 108 points.
  
• The recent move in Treasury yields to 16-year highs has loomed over the stock market, which has pulled back after the Federal Reserve last week signaled a hawkish long-term outlook for interest rates.
  
• The Democratic-led U.S. Senate forged ahead with a bipartisan stopgap funding bill aimed at averting a fourth partial government shutdown in a decade. The House of Representatives prepared to vote on partisan Republican spending bills with no chance of becoming law.

Market Views

• Asian stocks gained in Friday morning, reeling from steep losses this week as hawkish central bank signals and rising yields battered sentiment, although a rebound in technology shares boosted Hong Kong’s Hang Seng.
  
• Worsening sentiment towards China also rattled local stocks, as fears of a property market crash surged after embattled developer China Evergrande Group suspended all planned debt issuances due to a government investigation.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,713

Target price:

Protective stop:

Outlook
This index could have formed a bottom at 33,294 last night. It is testing the 20EMA resistance. Price is likely to penetrate the 20EMA to move higher to 34,000. Stochastic is rising but MACD remains bearish.

Trading Idea
Buy now 33,710 for 34,000 with a stop below 33,400

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,829

Target price:

Protective stop:

Outlook
Price reached its lower channel trendline support, coinciding to its previous low support zone. It is likely to rebound to 18,650. Stochastic is at the oversold zone. MACD is giving divergence warning. We are likely to see price moving higher to 18,600.

Trading Idea
Buy 17,580 for 18,600 with a stop below 17,400

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 14,729

Target price:

Protective stop:

Outlook
This index could have formed a temporary bottom at 14,424. It moved and closed above the 20EMA, hinting at more upside ahead. Stochastic is rising and MACD is giving potential divergence warning. We are likely to see price moving higher to 14,950.

Trading Idea
Buy now 14,730 for 14,950 with a stop below 14,630

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7615

Target price:

Protective stop:

Outlook
Price rebounded with a long legged hammer yesterday after being supported by the 20EMA. It is likely to rebound to 7715 in the near term. Stochastic is falling but MACD remains bullish.

Trading Idea
Buy now 7615 for 7710 with a stop below 7570.

Market News

• Wall Street’s main indexes pounded over 1% on Tuesday as 10-year Treasury yields held their multi-year highs, with investors still wrestling with prospects for a long period of high interest rates and the economic fallout.
  
• Adding to investor anxiety was the potential of a partial U.S. government shutdown by the weekend, which ratings agency Moody’s warned would harm the country’s credit.
  
• Investors will focus on Friday’s personal consumption expenditures price index for a fresh view of the inflation picture. This week also brings other data including on durable goods and second-quarter gross domestic product, as well as remarks by Fed policymakers such as Chair Jerome Powell.

Market Views

• Asian stocks were mixed on Wednesday amid persistent fears of rising U.S. interest rates, while Chinese stocks rebounded on positive industrial profits data and promises of more stimulus. Hang Seng index rose 111 points while Nikkei 225 index dropped 97 points.
  
• Data showed that Chinese industrial profits rebounded sharply in August, helping narrow their declines for the year to date. Sentiment towards China was also somewhat aided by promises of more monetary stimulus from the People’s Bank of China.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,688

Target price:

Protective stop:

Outlook
This index reached its previous low support zone that formed since Jun 23. A hammer was formed at this support zone, hinting that price may rebound to the 20EMA resistance point at 33,920. Stochastic is at the oversold zone. MACD is bearish but could give potential divergence warning.

Trading Idea
Wait for better trading idea

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,593

Target price:

Protective stop:

Outlook
Price reached its lower channel trendline support, coinciding to its previous low support zone. It could rebound to test the 20EMA resistance first. A violation of this support zone will lead to another downward movement. Stochastic is at the oversold zone and MACD remains bearish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 14,582

Target price:

Protective stop:

Outlook
This index is bearish as it broke below the channel. It could be moving higher to test the 20EMA resistance, and continue its downward movement thereafter. Stochastic is at the oversold zone and MACD is bearish.

Trading Idea
Sell 14,710 for 14,300 with a stop above 14,790

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7614

Target price:

Protective stop:

Outlook
Price is sitting at the trendline support, coinciding with the resistance-turned-support zone. The 20EMA is near to this support zone as well. Price could rebound from this support to test 7740 again. Stochastic is strong and MACD is bullish.

Trading Idea
Buy 7610 for 7725 with a stop below 7580

Market News

• Wall Street tanked in a broad sell-off on Thursday, as investor risk appetite was dashed by worries that Fed’s restrictive monetary policy will remain in place for longer than anticipated. The Dow slumped 370 points, S&P 500 fell 72 points and Nasdaq Composite slid 245 points.
  
• On Wednesday, at the conclusion of its two-day monetary policy meeting, the central bank left the Fed funds target rate unchanged at 5.25%-5.50%, as expected. The revised economic projections showed interest rates will remain elevated through next year, dampening hopes for easing of policy before 2025.
  
• An unexpected 9% drop in initial U.S. jobless claims, to the lowest level in eight months, played into the Fed’s notion that the labor market remains too tight, putting upward pressure on wages, and the economy is resilient enough to withstand higher rates for longer.

Market Views

• Asian stocks were mixed on Friday as markets continued to fret over rising interest rates, while Japan’s Nikkei trimmed some early losses after the Bank of Japan offered no changes to its ultra-dovish policy. Hang Seng index rose 190 points while Nikkei 225 index dropped 136 points.
  
• The BOJ kept rates at negative levels, and said it will continue with its current pace of stimulus, disappointing some investors hoping for any hawkish signals. Data on Friday showed that Japanese CPI inflation grew slightly more than expected in August.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation: Short @ 34,870

Last: 34,124

Target price: 34,400

Protective stop: 34,620 filled

Outlook
This index broke down the triangle pattern yesterday. It is currently testing its previous low support zone. We could see a short term rebound from this support zone to the triangle trendline resistance at 34,440. Stochastic is at the oversold zone and MACD is bearish.

Trading Idea
Sell 34,870 for 34,300 with a stop above 34,620. Entry and stop were filled on 20 Sept.

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation: Short @ 17,960

Last: 17,832

Target price: 17,420 filled

Protective stop: 18,100

Outlook
Price has been moving within a falling channel that formed since Mar 23. It hit the lower trendline support that coincides with the previous low support zone. Price could rebound to 18,080 in the near term. Stochastic is rising but MACD is still bearish.

Trading Idea
Sell 17,960 for 17,420 with a stop above 18,100. Entry and target price were filled on 21 Sept.

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 14,733

Target price:

Protective stop:

Outlook
Price broke and closed below the channel. It appears to rebound from its previous low support zone. We could see price rebounding from this support zone to the 20EMA resistance point at 14,970. Stochastic is at the oversold zone and MACD is bearish.

Trading Idea
Wait for better trading idea

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7664

Target price:

Protective stop:

Outlook
Price is currently consolidating within a tight range between 7622 and 7746. It is likely to move within this range until either end is broken for directional movement. Stochastic is at the overbought zone and MACD remains bullish.

Trading Idea
Wait for better trading idea

Market News

• Wall Street lost ground on Tuesday, with risk-off sentiment weighing as the U.S. Fed convened for its much-anticipated two-day monetary policy meeting. Dow Jones slid 106 points, S&P 500 was down 9 points and Nasdaq Composite lost 32 points.
  
• Financial markets have priced in an all-but-certain 99% probability that the central bank will leave its key Fed funds target rate at 5.25%-5.00% on Wednesday, and a growing 70.9% likelihood of standing pat at its next meeting in November, according to CME’s FedWatch tool.
  
• The Westpac/Melbourne Institute Leading Index- an indicator of future Australian economic growth- read 0% for August, heralding continued weakness in the Australian economy as it grapples with high interest rates and slowing Chinese demand.

Market Views

• Asian stocks fell on Wednesday morning with markets remaining broadly risk-off before a closely-watched interest rate decision from Fed later in the day, while weak economic readings from Japan also weighed. Hang Seng index dropped 134 points and Nikkei 225 index fell 185 points.
  
• Japan reported a data showed that the country’s exports and imports shrank less than expected in August. But Japan’s trade deficit widened substantially more than expected, hitting a three-month low on weakness in China, which is one of the country’s biggest export destinations.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 34,478

Target price:

Protective stop:

Outlook
This index is currently consolidating within a triangle pattern. It is capped by the falling 20EMA resistance point. We are likely to see price continuing the decline to its lower trendline support. Stochastic remains weak and MACD is bearish.

Trading Idea
Sell 34,870 for 34,300 with a stop above 34,620

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,861

Target price:

Protective stop:

Outlook
Price is moving within a sideway consolidation zone. It was capped by the falling 20EMA. Stochastic is moving lower and a bearish crossover is likely. MACD remains bearish. We are likely to see price breaking down the sideway zone to move lower.

Trading Idea
Sell 17,960 for 17,420 with a stop above 18,100

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 15,162

Target price:

Protective stop:

Outlook
Price is moving within a falling channel. It is capped by its falling 20EMA resistance point. It is likely to move lower to its lower trendline support in the next few hours. Stochastic is falling but MACD remains bearish.

Trading Idea
Wait for better trading idea

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7637

Target price:

Protective stop:

Outlook
Price broke and closed above the declining trendline on 14 Sept. It is going to retest this trendline which has now become a support in the next few hours. If price can hold above 7585, it is likely to rebound towards 7910. Stochastic is strong and MACD is bullish.

Trading Idea
Wait for better trading idea

Market News

• Dow Jones experienced an impressive rally on Thursday, recording a surge of over 300 points, the highest one-day increase in more than five weeks. This substantial gain is chiefly attributed to the strength of the U.S. consumer sector, as reflected in recent retail sales data.
  
• U.S. retail sales have consistently displayed robust growth, with data showing a steady rise for the fifth consecutive month in August. Sales rose by 0.6%, despite concerns over a potential deceleration following Amazon’s Prime Day sales event in July and the Fed’s benchmark interest rate hitting its highest level in 22 years.
  
• Gold prices gained on Friday as the dollar eased against the yuan after promising China economic data boosted recovery hopes in the world’s top bullion consumer, although the possibility of further U.S. interest rate hikes kept investors on edge.

Market Views

• Asian stocks rose sharply on Friday as China rolled out more measures to support economic growth, while markets bet that Fed will hold interest rates next week despite strong readings on inflation. Hang Seng index advanced 188 points and Nikkei 225 index jumped 364 points.
  
• Data released on Friday showed Chinese industrial production and retail sales grew more than expected in August. But fixed asset investment declined, while new home sales also slumped, indicating that large portions of Asia’s largest economy still remained under pressure.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation: Short @ 34,720

Last: 34,991

Target price: 34,100

Protective stop: 34,770 filled

Outlook
This index broke and closed above the declining trendline last night. Price could retrace to the 34,770 before the next rally. Stochastic is rising and MACD has turned bullish.

Trading Idea
Sell 34,720 for 34,100 with a stop above 34,770. Entry was filled on 13 Sept and stop order was filled on 14 Sept

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 18,232

Target price:

Protective stop:

Outlook
Price was capped by the falling 20EMA. It could be consolidating within a flag pattern. Stochastic is still weak and MACD remains bearish. These could increase chances of price breaking down the flag to move lower.

Trading Idea
Sell 18,240 for 17,660 with a stop above 18,380

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation: Long @ 15,270

Last: 15,496

Target price: 15,400

Protective stop: 15,280 filled

Outlook
Price rebounded after being supported by the rising 20EMA. We are likely to see price continuing to move higher if it penetrate above 15,630. Stochastic is rising and MACD is bullish.

Trading Idea
Buy 15,270 for 15,540 with a stop below 15,220. Entry was filled on 8 Sept. Shift stop higher to 15,280 to set break even. Shift target lower to 15,400. Break even was filled on 13 Sept

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation: Long @ 7435

Last: 7733

Target price: 7620 filled

Protective stop: 7440

Outlook
Price broke out from a flag continuation pattern. It further broke out a declining trendline that formed since Feb 2023. Price could retest the trendline before the next rally. Stochastic is at the overbought zone and MACD is bullish.

Trading Idea
Buy 7435 for 7620 with a stop below 7360. Entry was filled on 8 Sept. Shift stop higher to 7440 to set break even. Target was filled on 14 Sept