Market News
- Stocks rose slightly on Wednesday as investors cheered a possible trade deal between the U.S. and China, though softer measures on payrolls and the service economy kept a lid on optimism. At the close, Dow gained 39 points while NASDAQ put on 46 points.
- White House economic advisor Larry Kudlow told reporters Wednesday that China has acknowledged for the first time that the United States has legitimate gripes about IP theft, forced technology transfer and cyber hacking. High-level trade negotiations between China and the U.S. resumed on Wednesday in Washington
- ISM non-manufacturing index dipped to 56.1 last month, lower than expectation of 58.1 and was its softest read since August 2017. ADP employment change was also lower than expectation coming in at 129K against expectation of 184K.
Market View
- Shares in Asia traded mixed on Thursday morning as investors watched out for developments amid ongoing negotiations on the U.S.-China trade front.
- Chipmakers, heavily affected by U.S.-China trade relations, led the tech sector higher. NASDAQ is likely to lead the market higher in the near future. A trade deal is a win for the U.S., China and the global economy but a successful deal may have already been priced into the market.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation :
Last : 26,267
Target price:
Protective stop:
Outlook
Price managed to stay above 26,100 yesterday and tested the upper limit of 26,280. Short term wise, we are expecting this index to move sideways in a consolidation with potential for small upside movement. Stochastic is showing a divergence but MACD is still bullish and rising.
Trading Idea
Watch the support at 26,120. If this support hold, a test to 26,350 is likely.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation :
Last : 30,104
Target price: 30,104 reached
Protective stop:
Outlook
Price reached a high of 30,149 and is showing strength and potential to move to the Fibonacci 161.8 point of 30,645. Stochastic is into overbought extreme. MACD is bullish and rising but is also showing weakness and a possible divergence in the making. We could be approaching a high.
Trading Idea
Take profit on long position and wait for better trade idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation :
Last : 7564
Target price:
Protective stop:
Outlook
Price made a new high last night at 7590 but MACD is starting to show weakness despite being bullish. This could be a warning we are approaching a high. While the trend is still strong and there is potential, we are wary of a top forming.
Trading Idea
We are bullish but wary of a market top. There is potential for a higher movement but we could be near a high
Nikkei 225 Index
(CFD Symbol: JP225)
Trend : Bullish
Recommendation :
Last : 21,768
Target price: 21,880 reached
Protective stop :
Outlook
Price reached a high of 21,843 yesterday has pulled back to 21,645. We think the trend can continue higher. Stochastic is turning up and MACD is still bullish. Momentum is indicating there is potential for upside movement as long as price stays above 21,675.
Trading Idea
Look for dip to 21,700 to get into a long position for a movement to 21,880.
