News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/t34kotPE8R
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/lM1OIJdjhr
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/6qGEVjDlN6
Equities Q3 Technical Forecast: Nasdaq 100 Aims for Record Highs, Nikkei 225 and Hang Seng Index Range-Bound

Equities Q3 Technical Forecast: Nasdaq 100 Aims for Record Highs, Nikkei 225 and Hang Seng Index Range-Bound

Margaret Yang, CFA, Strategist

Nasdaq 100, Nikkei 225, Hang Seng Index – Third Quarter Technical Forecast

  • The Nasdaq 100 index breached above a key resistance, opening the door for higher highs
  • The Nikkei 225 and Hang Seng Index may continue to range bound waiting for fresh catalysts

To read the full equity forecast, including the fundamental outlook, download our new 3Q trading guide from the DailyFX Free Trading Guides!

Nasdaq 100 Index

The Nasdaq 100 index breached above a key resistance level at 14,000 through the end of June, which opened the door for further upside potential. The index had also completed a “Double Bottom” patten as shown on the chart below, signalling a possible bullish trend reversal. The formation of consecutive higher highs and higher lows on the weekly chart underpins bullish momentum, paving the way for repeated attempts at fresh record highs. A major resistance level can be found at around 14,960 – the 261.8% Fibonacci extension.

Looking ahead, the upward trajectory remains intact for the US stock market, although some technical pullbacks are possible through the third quarter as the Fed’s monetary policy stance shifts towards a hawkish tone. The recent strong economic data, rising inflation and ample liquidity conditions may warrant a gradual scaling back of pandemic-era rescue efforts without causing a major pullback in equities.

The Nasdaq 100 index registered a massive gain of 30% over the past 8 months. On the weekly chart, the ascending trend shows no sign of stopping soon as the 4- and 10-week Simple Moving Average (SMA) lines are trending higher. Still, traders should be vigilant about short-term pullbacks if profit-taking kicks in.

Nasdaq 100 Index – Weekly Timeframe (2020 to 2021)

nasdaq

Source: TradingView

Nikkei 225 Index

The Nikkei 225 entered a consolidative period after failing to breach a 127.2% Fibonacci extension level (31,200) during March-April. The index attempted to break the ceiling of the channel following news that Japan eased State of Emergency measures in most prefectures. A successful breakout, if achieved, would likely intensify buying pressure and open the door for further gains towards 31,200.

That said, the 4-, 10- and 20-week SMA lines have recently formed a “Death Cross”, suggesting a bumpy road ahead for further recoveries. An immediate support level can be found around 28,360 – a 100% Fibonacci extension.

Looking ahead, current consolidation may pave the way for higher highs should a robust global economic recovery drive up demand for Japanese exports and services. On the other hand, a relatively strong Japanese currency may weigh on equity prices.

Nikkei 225 Chart – Weekly Timeframe (2019 to 2021)

Nikkei chart

Source: TradingView

Hang Seng Index

Hong Kong’s Hang Seng Index (HSI) breached a major “Descending Channel” in early 2021 before prices entered a consolidative period. The index may continue to range between 28,100 and 29,300 waiting for fresh catalysts. A “Double Bottom” pattern has likely formed on the weekly chart, signalling that prices may have stabilized opening potential for a bullish trend reversal.

Looking ahead, a firm breach above the below 23.6% Fibonacci retracement (29,300) would likely intensify buying pressure and expose the next key resistance level at 31,180 – the previous high. However, a breakdown below support at 28,100 may lead to a deeper pullback with an eye on 27,150.

Hang Seng Index – Weekly Timeframe (2019 to 2021)

hang seng

Source: TradingView

To read the full Equity forecast, including the fundamental outlook, download our new 3Q trading guide from the DailyFX Free Trading Guides!

--- Written by Margaret Yang, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES