CFD Indices 3 April 2019

Market News

  • U.S. stocks were mixed after the close on Tuesday. The 30-stock Dow closed 79.29 points lower at 26,179.13 as it fell for the first time in four sessions. Nasdaq 100 Index was able to attain a new high for 2019 after moving higher.
  • Data released on Tuesday showed U.S. durable goods plunged 1.6% surpassing the 1.1% expectation while core durable goods posted a weak 0.1% increase against 0.3% expectation. These had come on the heel of weak retail sales data released on Monday.
  • A weak durable goods data pulled US Treasury yields lower after strong manufacturing data from US and China had resulted in strong gains on Monday. US10-year Treasury yields is now higher than its 3-month counterpart but 5-year remains lower against the 3-month, resulting in a partial inverted yield curve.

Market View

  • Asian shares hovered near seven-month highs early on Wednesday as global investors paused for breath after the strong rally seen earlier this week. A better Chinese PMI helped to lift stocks prices higher in mid-morning.
  • China’s Caixin Service PMI index for March came in at 54.4 which was higher than expectation of 52.3 and better than the previous month of 51.1. Today’s data continues a recent run of better results, helping to ease concerns of China’s economy going into a drastic slowdown.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bullish
Recommendation :
Last : 26,239
Target price:
Protective stop:

Outlook

Price is looking like it is building a consolidation base from 26,100 to 26,280. If price can hold above support at 26,100, it is likely to test the upside again in the next couple of days. A move below the support base will likely lead to a decline to 25,950, which is the Fibonacci 38% of the rally from 25,419 to 26,280. MACD is bullish but Stochastic is hinting of a decline.

Trading Idea

Watch the support around 26,000. If it can hold, look to buy for a test of 26,280 and higher.


Hang Seng Index

(CFD Symbol: HK50)

Trend : Bullish
Recommendation :
Last : 29,968
Target price: 30,104
Protective stop: 29,650

Outlook

Yesterday, price was hanging around the 2019’s high of 29,668. This morning, on the back of a good Chinese Caixin data, has reached close to the Fibonacci 127% of the previous rally from 28,068 to 29,668. The Fibonacci 127% target lies at 30,104. MACD is bullish and is able to support a move to Fibonacci 127%.

Trading Idea

Keep long for 30,104 and bring stop higher to 29,650.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bullish
Recommendation :
Last : 7538
Target price: 7506 exceeded
Protective stop:

Outlook

Price made a new high at 7542, which exceeded our target of 7506. MACD could be forming a divergence warning at this moment. There could be a correction ahead. Stochastic has stayed in the overbought extreme for a period of time and could be about to decline. The area to watch out for is 7360-7370. A move below this level would confirm a high in place and a correction in progress.

Trading Idea

Exit long position and wait for better trade ideas and signals


Nikkei 225 Index

(CFD Symbol: JP225)

Trend : Bullish
Recommendation :
Last : 21,705
Target price:
Protective stop :

Outlook

Yesterday’s Shooting Star pattern sent price into a short lived decline to 21,475. The index was supported by a rising moving average. This morning, price has moved above the old high of 21,689. The next resistance lies at 21,758. Support is at 21,466. MACD could be giving out a bearish divergence, hinting of a possible end to this rally.

Trading Idea

We would prefer to wait for better trade idea and signal. We will stay aside for this index at the moment.


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