Market News
- Dow Jones jumped 329 points on Monday, starting off the 2nd quarter on a strong footing, as strong manufacturing data out of the U.S. and China eased concerns of a possible global economic slowdown.
- US ISM Manufacturing PMI was higher than expectations, coming in at 55.3 against 54.2 while US Retail Sales declined to -0.2% against 0.3% expectation. Upbeat manufacturing data managed to overshadow an unexpected decline in U.S. retail sales
- Concerns about slowing economic momentum have not entirely dissipated. With the US 1Q19 corporate earnings reporting season about two weeks away, investors are bracing for what may be the first US profit decline since 2016. Analysts expect quarterly earnings to fall 2 percent, according to Refinitiv data.
Market View
- Asian stock markets jumped in morning trade on Tuesday following overnight gain on Wall Street. Oil price rose on Monday to a new 2019 high also helped energy stocks to gain grounds.
- A rally in the S&P 500 on Monday resulted in a technical benchmark, known as a golden cross pattern that could, if history holds true, indicate more gains in the near term. Considered a bullish signal by chart analysts and other market watchers, a golden cross forms when an index’s near-term moving average of daily closing prices rises above a longer-term moving average.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation : Long
Last : 25,566
Target price:
Protective stop:
Outlook
Price was capped by the 20EMA as well as the Fibonacci 50% correction point. If price stays below this resistance, another test of the downside at 25,350 is likely. Only a move above 25,800 would hint of more upside. MACD is bearish but near to the zero line. Stochastic is moving lower without even coming close to the overbought extreme. Stochastic is hinting the trend is bearish.
Trading Idea
Look to sell if price moves towards resistance near 25,700 for a decline to 25,350.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bearish
Recommendation : Short
Last : 28,734
Target price: 28,150
Protective stop: 28,950
Outlook
Price is capped by the 20EMA line. For 2 days, price had been unable to break above the 20EMA. MACD is bearish and the fast line is looking like it will turn down near the zero line. Stochastic is near to the overbought extreme and could also be turning down. These signs do not bode well for this index. The index is likely to test the support at 28,474 and a break will lead price to 28,064.
Trading Idea
Sell near current 20EMA line for a test of 28,065.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bearish
Recommendation : short
Last : 7283
Target price: 7195
Protective stop: 7385
Outlook
Price was capped by the Fibonacci 62% retracement and has since moved lower to near the low of 7258. A break of this support is likely to bring price lower to 7195. MACD is bearish. Stochastic is weak but is near to the oversold extreme. We see this index going lower but the downside could be limited.
Trading Idea
Look to sell at current market price for a test of 7195 target.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,045
Target price:
Protective stop :
Outlook
This index is near to the support base. There are two supports at 28,893 and at 28,843. If price can hold this support area, there is a chance of this index going higher again. Stochastic is near to the oversold extreme and could be turning up. MACD could be forming a bullish divergence.
Trading Idea
Wait for better trade signals.
