Tag: UK100

Market News

• U.S. stocks ended solidly lower on Thursday, with shares of Tesla falling after its results and Treasury yields surging as Fed Chair Powell spoke about monetary policy and investors worried whether interest rates would stay higher for longer.
  
• Tesla shares dropped a day after the carmaker missed Wall Street expectations on third-quarter gross margin, profit and revenue, and its CEO Elon Musk said he was concerned about high interest rates affecting demand.
  
• Powell said at the Economic Club in New York that U.S. central bankers were moving carefully on policy after aggressive rate hikes last year, but he added that the economy’s strength and continued tight labor markets could warrant further rate hikes.

Market Views

• Asian stocks extended steep losses on Friday as a rout in global bond markets continued to decimate risk appetite, while traders remained on edge over any more escalation in the Israel-Hamas war. Hang Seng index dropped 54 points and Nikkei 225 index slid 163 points.
  
• Comments from former BOJ officials also suggested that the bank could end its negative rate regime by as soon as December, ending nearly a decade of easy monetary policy enjoyed by Japanese stocks.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,390

Target price:

Protective stop:

Outlook
Price continued to form lower highs and lower lows, suggesting a bearish price trend. We think that price may retrace to the 20EMA before the next decline. Stochastic is at the oversold zone and MACD is bearish.

Trading Idea
Sell 33,620 for 32,900 with a stop above 33,690

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,227

Target price:

Protective stop:

Outlook
This index is currently moving within a rectangle sideway consolidation zone. A big directional movement will be seen once either ends is violated. Stochastic is falling and MACD remains bearish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation: Short @ 15,200

Last: 14,740

Target price: 14,900 filled

Protective stop: 15,140

Outlook
Price was rejected by the support-turned-resistance zone. It broke down a triangle continuation pattern and continued to fall. This index could retrace to its resistance zone around 14,860 before its next decline.

Trading Idea
Sell 15,200 for 14,900 with a stop above 15,250. Entry was filled on 13 Oct. Move stop lower to 15,140 to protect profit. Target was filled on 19 Oct

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7480

Target price:

Protective stop:

Outlook
Price unable to penetrate its key resistance zone of 7710. A huge bearish engulfing was formed yesterday. It could correct to the 20EMA before the next decline. Stochastic is at the oversold zone and MACD is bearish.

Trading Idea
Wait for better trading idea

Market News

• The Nasdaq dipped while Dow Jones and S&P 500 were flat due to the surge on benchmark U.S. Treasury on Tuesday as robust economic data and strong third-quarter earnings suggested the Federal Reserve may keep policy tight for longer than expected.
  
• Chip shares came under pressure after President Joe Biden’s administration announced plans to halt shipments to China of more advanced artificial intelligence chips.
  
• Consensus-topping retail sales data along with solid profit beats from Bank of America and Goldman Sachs added to a growing mountain of evidence that the U.S. economy is chugging along despite the Fed’s inflation-fighting interest rate hikes.

Market Views

• Asian shares moved in a tight range on Wednesday as growing concerns over a spillover in the Israel-Hamas war dented risk appetite, largely offsetting positive data that showed China’s economy grew more than expected. Hang Seng index dropped 18 points and Nikkei 225 index slid 78 points.
  
• Government data showed that China’s gross domestic product grew 4.9% in the three months to September 30, more than expectations for growth of 4.4%. But the figure was weaker than the 6.3% growth seen in the prior quarter.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation: Short @ 33,750

Last: 33,973

Target price: 33,270

Protective stop: 33,840 filled

Outlook
Price broke and closed above its previous price high resistance point. It was supported by the rising 20EMA as well. We think that price may continue its upward strength and to move higher to 34,220. Stochastic is turning up and MACD remains bullish.

Trading Idea
Sell 33,750 for 33,270 with a stop above 33,840. Entry was filled on 13 Oct and stop was filled on 16 Oct

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,773

Target price:

Protective stop:

Outlook
Price has moved back inside the channel. It is currently sitting at the Fibonacci 50% correction point as well as the 20EMA. We could see price moving higher to 18,620 if it stay above the 20EMA. MACD is bullish too.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation: Short @ 15,200

Last: 15,098

Target price: 14,900

Protective stop: 15,140

Outlook
Price was rejected by the support-turned-resistance zone. The 20EMA is flat now, suggesting potential strong impulsive movement ahead. As long as price move below the resistance, there is chance for price moving lower again.

Trading Idea
Sell 15,200 for 14,900 with a stop above 15,250. Entry was filled on 13 Oct. Move stop lower to 15,140 to protect profit.

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7683

Target price:

Protective stop:

Outlook
Price is going to test its key resistance zone of 7710 soon. It has to close above this zone to breakout the sideway zone and to move higher to 7910, else, we will see price testing its low again. Stochastic is at the overbought zone and MACD is still bullish.

Trading Idea
Wait for better trading idea

Market News

• U.S. stocks ended just slightly lower after bouncing off session lows on Thursday as investors awaited Friday’s monthly jobs report and further possible clues on the outlook for interest rates. Dow Jones dropped 9 points, S&P 500 fell 5 points and Nasdaq Composite slid 16 points.
  
• U.S. data on initial claims for state unemployment benefits pointed to still-resilient labor market conditions, a day after a report showing U.S. private payrolls increased less than expected in September.
  
• The sharp decline for oil prices that has brought down West Texas Intermediate futures down by more than $10 per barrel could cause a reaction from oil producing countries, according to Helima Croft, global head of commodity strategy at RBC Capital Markets.

Market Views

• Hang Seng index jumped over 2%, leading gains in the wider Asia-Pacific region as investors look ahead to U.S. jobs data that could set the tone for Fed’s next move for interest rates. Nikkei 225 index was up 2 points.
  
• The Reserve Bank of India is expected to maintain its hawkish stance and hold interest rates steady at 6.5% when its three-day meeting concludes Friday, a Reuters poll showed.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,096

Target price:

Protective stop:

Outlook
Dow Jones remains bearish. It slightly rebounded after being supported by the strong support, but it is forming a potential bearish pennant pattern. Price could continue to dive if it unable to penetrate the 20EMA.Stochastic is rising but MACD remains bearish.

Trading Idea
Sell 33,125 for 32,830 with a stop above 33,180

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,505

Target price:

Protective stop:

Outlook
Hang Seng managed to move back inside the channel. If it can penetrate above the 20EMA, we can expect higher upside at 18,590. Stochastic is at the oversold zone. MACD remains bearish but a bullish crossover is likely.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 14,725

Target price:

Protective stop:

Outlook
Nasdaq is currently consolidating within a sideway range. The trendline is a key resistance. If price stay below the trendline, we see price testing its low at 14,440. Stochastic is neutral and MACD is bullish.

Trading Idea
Wait for better trading idea

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7479

Target price:

Protective stop:

Outlook
Price rebounded from its nearest support zone. It could be moving within a big consolidation zone. As long as this support holds, there is chance for this index moving higher to test its resistance of 7700 again. Stochastic is at the oversold zone but MACD remains bearish.

Trading Idea
Wait for better trading idea

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