CFD Indices 4 March 2019

Market News

  • Trump on Friday, delayed tariffs as talks between US and China are progressing well. Trump called on China to immediately remove tariffs on US agricultural products.
  • WSJ and Bloomberg have reported that US and China are close to striking a trade deal after a year-long tariffs skirmish. WSJ further reported that around Mar 27, during a summit between Trump and Xi, a trade deal would be signed.
  • US equity market closed on a high note with gains in all 3 major indices. Japan’s Nikkei 225 rose to a fresh 3-month high on Monday morning. Hang Seng index was higher on the back of a strong China equity market showing.

Market Views

  • After a yearlong tariffs skirmish, with a trade deal likely on the horizon, the year-long decline in the global equity markets could be about to be reversed. Dec 2018 was low for many major equity markets and could be the start of a long multi-year rally in the making.
  • The rally that started in Dec 2018, in the short run may need a correction and consolidation. We view dips as buying opportunities for the longer term.

Dow Jones Index

(CFD Symbol: US30)

Trend :
Recommendation :
Last : 26,175
Target price:
Protective stop:

Outlook

Price after breaking the trendline has climbed back to the edge of the trendline. If price is unable to move above the trendline, it is likely to move lower. MACD is showing bearish divergence at the moment.

Trading Idea

Watch the reaction at trendline resistance and go in the direction of the breakout of the trendline.


Hang Seng Index

(CFD Symbol: HK50)

Trend : Bullish
Recommendation : Long
Last : 29,196
Target price: 29,500
Protective stop: 28.900

Outlook

Price continues to move within the trend channel after a short movement outside of the channel. Price has also made a higher high today in a strong trend. Both Stochastic and MACD are rising and hinting of more upside potential

Trading Idea

Look to buy at 29,100 for a ride back to the upper trend channel.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bullish
Recommendation : Long
Last : 7160
Target price: 7228
Protective stop: 7126

Outlook

Price broke above a Rising Wedge chart pattern and may continue towards the target at 7226. Stochastic is into overbought zone but MACS is still bullish and able to support at higher price.

Trading Idea

In view of the strong trend, we will remain bullish; we are looking for a price dip to 7160 to get into this bullish trend.


S&P 500 Index

(CFD Symbol: US500)

Trend : Bullish
Recommendation : Long
Last : 2814
Target price: 2832
Protective stop : 2791

Outlook

Price stayed above the rising trend line and should proceed to the top of the trend channel. MACD is bullish and strong at the moment. Stochastic is in its extreme overbought zone at the moment but with a strong trend, should be able to support a price movement to 2832.

Trading Idea

Look to buy the dip to 2805 for a price rally to 2832.


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