Market News
- S&P 500 and NASDAQ closed lower, the first time in four sessions after release of a weak US home sale data. Dow managed to eke out a marginal 7 points gains.
- US-China trade talk is being push back to April as Trump is in no rush to complete a deal, while China’s President Xi would like to link a formal state visit to the States to a trade deal announcement. President would like a deal iron out before he sits down with Trump
- US New Home Sales fell 6.9% in Jan, which was more than expected, in part due to a government shutdown. China Industrial Output had expanded at the slowest rate in the past 17 years the day before and both these news are adding to worries over a global economic slowdown.
Market View
- Asian markets were mixed this morning. While Nikkei 225 managed to climb higher, Australian 200 Index was negative as investors digest new development on US-China trade front.
- Short term wise, the US indices may have reached a peak and we could see some pullback. Australian 200 Index’s rally seems like a corrective rally while Nikkei 225 and Hang Seng are both looking like a consolidation pattern.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,756
Target price:
Protective stop:
Outlook
Price moved in a sideway pattern yesterday and tonight closing will have a bearing on next week’s direction. Price has not been able to move past its Fibonacci 62% correction point and that is our major concern. MACD has shown a bearish divergence, hinting of a possible top. Stochastic has a bearish divergence as well and is moving lower.
Trading Idea
We prefer to stay aside for today and wait for better trend direction.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,920
Target price:
Protective stop:
Outlook
Price is consolidating in a sideway rectangle pattern while Stochastic is moving lower from overbought zone. This is usually a bullish hint especially when the MACD is bullish. We think there is a good chance the index will try the 29,156 resistance point next week when the consolidation is over.
Trading Idea
Wait for better and clearer trend direction.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7246
Target price:
Protective stop:
Outlook
Price made a new high 2 days ago with MACD bearish divergence warning. Price is likely to see a correction. Support is at 7196 and Fibonacci 38% support is at 7148. The latter support could provoke a reversal for the uptrend to resume again.
Trading Idea
We prefer to buy dip at 7148. Use a likely correction to buy the dip at 7148 for a possible test for 7284 high again.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,494
Target price:
Protective stop :
Outlook
Price is in a triangle consolidation at the moment. A triangle pattern is usually a continuation pattern. We are expecting price to resume its upward movement once the triangle consolidation is over. Stochastic is neutral at the moment. MACD is bullish and could be turning up. A move above 21,550 would be the first hint of a price rally towards 21.900.
Trading Idea
Watch the upside breakout at 21,550 and follows in the direction for 21,900.
