According to marketwatch, Asian stocks tumbled Monday after relatively strong U.S. employment data tempered hopes the Federal Reserve might cut interest rates.
Benchmarks in Shanghai, Tokyo, Seoul and Hong Kong all declined.
Fed leaders have said they are ready to cut rates to support economic growth amid a tariff war with Beijing. But Friday’s stronger-than-expected data on June job creation prompted questions about whether the Fed might still think that is needed.
But not only Asian stocks but also US.
Let’s take a look on Nasdaq, which could be traded very nicely. Nasdaq tested the upper trendline and bounced down. It also created Rising Wedge pattern, which could be consider as bearish sign. The market is overbought from a short-term point of view. There are two possible scenarios. The first one is that we could see a bounce from support trendline and retest dot trendline. The second one is bearish. That could happened when the market breakdown the support trendline. The best way to find out good support is check the “point of bounce” from weekly and monthly chart or use fibo retracement (from bottom to top).
This analysis serves only for educational purpose and can NOT be consider as investing advice. You trade with your capital on your responsibility. We recommend you to keep tight your money and risk management.
The post Nasdaqs tests the bottom of Rising Wedge appeared first on Gulfbrokers.