Market News
- Last night, ECB slashed it growth forecast, delayed a planned rate hike to 2020 and launched an emergency round of policy stimulus. This sudden action led to investors fearing the worst for the global economy, bringing down stock indices around the world.
- The global economy saw Bank of Canada took a sudden dovish turn in its economic view while Australia reported a woeful GDP number. China’s economic woes have already worried investors since the start of 2019.
- Tonight Non-Farm Payroll will be closely watched with investors looking out for signs whether the US economy might be slowing down. The US economy is the only healthy major economy left in the world.
Market View
- With worries over the health of the global economy, we are expecting the decline in market indices to continue. The decline, which started 3 days ago, is likely to continue into next week.
- Asian markets are expected to be weaker today. Nikkei index is down by close to 200 points. Shanghai and Hang Seng are expected to be weak for today.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bearish
Recommendation : Short
Last : 25,439
Target price: 25,000
Protective stop: 25,760
Outlook
Price is staying below a steep downward sloping 20EMA which is indicating a strong bearish trend. The Head and Shoulder chart pattern which has a price target of 25,500 has already been met. MACD is still bearish and Stochastic is weak. With the strong trend, we are expecting a price movement to target at 25,000.
Trading Idea
Keep the bearish view with 25,000 as the target. Resistance at 25,650 would be a good location to get into a short position.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bearish
Recommendation : Short
Last : 28,377
Target price: 27,775
Protective stop: 28,950
Outlook
Price broke and opened below the support zone this morning. We are expecting this decline to continue into next week given the strong trend. Price has already reached the Fibonacci 38% retracement level and the next support lies at 28,070. Both momentum oscillators are bearish.
Trading Idea
Keep short for Fibonacci 50% or 62% retracement levels.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bearish
Recommendation : Short
Last : 7012
Target price: 6968
Protective stop: 7115
Outlook
Price broke below the trend line and has moved to our target at Fibonacci 50% correction level. 20EMA and the trend are strong and bearish. Price should be moving lower to test the Fibonacci 62% point at 6968. MACD is bearish and Stochastic is weak. Both momentum oscillators are hinting of a price decline.
Trading Idea
Keep short for the next Fibonacci target at 6968.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend : Bearish
Recommendation : Short
Last : 21,146
Target price: 20,845
Protective stop : 21,500
Outlook
Price broke the trendline and is moving towards its base at 20,846. This channel also looks like a Rising Wedge chart pattern, which is a reversal pattern and has a price target of 20,845. Stochastic is weak and MACD has turned bearish.
Trading Idea
Look to get into a short positon close to the 20EMA at 21,400. Target is at 20,845
