CFD Indices 19 March 2019

Market News

  • Dow Jones Index advanced 65 points to 25,914, posting a four-session winning streak as gains in Apple helped to offset losses in Boeing. Both S&P 500 and Nasdaq 100 Index posted a slightly bigger percentage gain compared to the Dow Jones Index.
  • The S&P 500 closed higher as gains in energy and consumer discretionary stocks helped offset falls in shares of Boeing while Apple and Amazon’s gain help Nasdaq higher despite a fall in Facebook. A better exposure to the US market may be in the form of US500 or USTec which has performed better than the US30, which is weighed down by Boeing
  • A 2 day FOMC policy meeting starts tonight with market eagerly awaiting its outcome. CME Group’s Fed Watch tool has predicted market expectation for a rate hike is at zero. Investors are also looking for clues about Fed’s economic outlook as well as details of its 3.8 trillion of bond sale.

Market View

  • MSCI’s broadest index of Asia-Pacific shares outside Japan was virtually flat, just a hair away from the highest level since Sept. 21. Japan’s Nikkei average dropped 0.5 percent, while Australian stocks eased 0.1 percent. Hang Seng Index was also negative.
  • Less hawkish comments from Fed, easing of recession fear and potential for a resolution on US-China trade talks are likely to drive the equity market higher in the coming days.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bullish
Recommendation : Long
Last : 25,970
Target price: 26,180
Protective stop: 25,775


Price broke above the resistance zone at 25,926 and managed to stay above the resistance zone for the past 8 hours. Price needs to stay above this resistance zone to be bullish. Both MACD and Stochastic have shown bearish divergence warnings, hinting of a possible top. Upside could be limited to 26,180.

Trading Idea

Look to enter near the 20EMA support at 25,910 for a possible rally to 26,180.

Hang Seng Index

(CFD Symbol: HK50)

Trend : Bullish
Recommendation : Long
Last : 29,403
Target price: 30,000
Protective stop: 29,035


Price broke above the previous high of 29,309 to reach a high of 29,539 this morning. 20EMA is pointing upward and showing a strong bullish trend. However both MACD and Stochastic are not strong and have yet to make a higher high with higher price peaks. In fact both MACD and Stochastic could be giving divergence warnings soon. First support is at 25,285.

Trading Idea

Keep long for 30,000 but keep a close watch on the 20EMA for possible turn in trend direction. Watch support at 25,285.

Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bullish
Recommendation : Long
Last : 7327
Target price: 7370
Protective stop: 7290


Price made a new high last night at 7240. 20EMA is rising and the gradient of the slope is steep, hinting of a strong bullish trend. However, price is rising in the form of a Rising Wedge chart pattern. A Rising Wedge chart pattern is a bearish reversal hint. Both MACD and Stochastic are starting to give bearish divergence warnings hinting of a possible price high in formation.

Trading Idea

Keep long but keep a tight stop. First sign of a reversal of the uptrend would be the previous high at 7285.

Nikkei 225 Index

(CFD Symbol: JP225)

Trend : Bullish
Recommendation : Buy
Last : 21,579
Target price: 21,900
Protective stop : 21,360


Price broke above the triangle pattern and has been rising. The rise however is not as strong as we would have liked. The rally seems to lack strength and momentum. Both Stochastic and MACD are showing signs of a bearish divergence, hinting of a possible price high forming.

Trading Idea

Keep long but keep a stop below 21,360. Target remains at 21,900.

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