CFD Indices 1 April 2019

Market News

  • Stocks rose on Friday amid renewed optimism on the progress of trade talks between US and China as Wall Street wrapped up a stellar quarter. Dow Jones closed 211 higher on Friday night and 11% for the quarter.
  • Treasury Secretary Mnuchin on Friday he had a “productive working dinner” with Chinese trade officials the previous night in Beijing, as both sides restarted negotiations with the hope of bringing an end to their protracted trade dispute.
  • For the 1st quarter of 2019, S&P 500 gained 13.1%, while the Dow Jones was up 11.2%. NASDAQ was up 16.5%. Shanghai Composite Index was even better. It was up 28.6% for the 1st quarter of 2019.

Market View

  • Stocks in Asia rose on Monday morning aided by data released over the weekend that showed economic activity in China unexpectedly bouncing back in March and US market’s strong showing on Friday night.
  • 1Q 2019’s rally was characterized by three factors: a sharp rally off the Christmas Eve lows, increasing optimism in U.S.-China trade talks and a Federal Reserve’s dovish monetary policy stance. The latter 2 factors should continue to aid stock markets’ performance.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bullish
Recommendation : Long
Last : 26,069
Target price: 26,250
Protective stop:

Outlook

US30 is testing its resistance at 25,120. If the index can move above this resistance, it should try the next resistance at 26,250. MACD is rising and bullish. Stochastic has reached the overbought extreme but is still rising. A move below 26,000 will halt this rally and call for more consolidation to unwind the overbought Stochastic condition

Trading Idea

Watch the resistance at 26,120 for directional clue.


Hang Seng Index

(CFD Symbol: HK50)

Trend : Bullish
Recommendation : Long
Last : 29,602
Target price:
Protective stop:

Outlook

Price is capped by the previous high at 29,668. If it can move above, it could be heading towards 30,000. Failure to stay above 29,668 could see the index falling back to close the gap towards 29,202. Stochastic is into overbought extreme but MACD is bullish and rising. 20EMA has turned bullish and has a steep gradient hinting of a strong bullish trend at the moment.

Trading Idea

Watch the index reaction at 29,668 and follow in the direction of that movement.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bullish
Recommendation : Long
Last : 7450
Target price: 7506
Protective stop: 7330

Outlook

USTec is breaking out of the Bollinger Band with bullish MACD and rising Stochastic indicator movement. It should move towards the next resistance level at 7506. Support lies at 7385. A move below 7380 would negate this bullish outlook.

Trading Idea

Buy the Bollinger Band breakout for a movement to 7506.


Nikkei 225 Index

(CFD Symbol: JP225)

Trend : Bullish
Recommendation : Long
Last : 21,669
Target price:
Protective stop :

Outlook

JP225, aided by a strong US performance and good China PMI data, is pushing towards the Fibonacci 127% projection point of 21,709. The previous high is at 21,689. A move above this point will push the index higher to 21,709. Stochastic is rising and MACD should be turning bullish if the rally continues. Inability to surpass 21,689 could sent the index back to 21,300

Trading Idea

Watch the resistance at 21,689 for directional clue.


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