CFD Indices 8 April 2019

Market News

  • U.S. stocks were higher after the close on Friday as investors’ sentiment was boosted by better-than-expected jobs data and progress on the U.S.-China trade front.
  • The U.S. economy added 196K jobs in March, against expectation of 175k. The U.S. unemployment rate remained at 3.8%. The previous month’s poor jobs data was revised higher to 33,000. Friday’s strong jobs report came after the release of disappointing economic data earlier in the week.
  • Stocks also got a boost this week as China and the U.S. appeared to make progress in trade negotiations. Trump said on Thursday that swift progress had been made. China’s Liu He said new consensus had been reached by both countries on the text of a trade agreement, according to official state news agency Xinhua.

Market View

  • Asia Pacific markets were mostly higher on Monday morning on the back of better-than-expected jobs data in the U.S. and reports of progress in Sino-U.S. trade talks. CCTV, China official broadcaster, reported on Sat that new progress was made after trade talk wrapped up in Washington on Friday.
  • This week’s gains come as investors brace themselves for the upcoming earnings season, which is set to start next week with J.P. Morgan Chase and Wells Fargo among the companies set to report earnings.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bullish
Recommendation :
Last : 26,310
Target price: 26,970
Protective stop: 26,200

Outlook

Price reached a high of 26,497 on Friday and its decline was supported by the rising 20EMA, currently at 26,307. The index could be heading towards the historical high of 26,970 but caution is advised as MACD is starting to show divergence warning. Currently MACD is still bullish and we may see another rally with another divergence before price starts to decline

Trading Idea

Keep long position for 26,970 with stop below 26,200


Hang Seng Index

(CFD Symbol: HK50)

Trend : Bullish
Recommendation :
Last : 30,037
Target price: 30,650
Protective stop: 29,668

Outlook

Price reached a high of 30,237 on Friday and could be heading higher to the Fibonacci 161.8% target at 30,650. Stochastic is into overbought extreme but MACD is still bullish. MACD’s strength is losing momentum and there could be divergence warning forming as price proceeds higher. The trend is still bullish and could be heading higher but caution is advised.

Trading Idea

Keep long for 30,650 with protective stop below 29,668.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bullish
Recommendation :
Last : 7562
Target price:
Protective stop:

Outlook

Price made a new high on Friday at 7593. The new high was only 4 points higher than the previous high and we could be forming a Double Top chart pattern. MACD is still bullish but there was a divergence warning. We could be approaching a market top soon and caution is advised

Trading Idea

Be cautious of a reversal. Watch support at 7490.


Nikkei 225 Index

(CFD Symbol: JP225)

Trend : Bullish
Recommendation :
Last : 21,733
Target price: 21,940 reached
Protective stop :

Outlook

Price exceeded the Fibonacci 161.8% point at 21,940 this morning when it reached a high of 21,973. However, both Stochastic and MACD have a bearish divergence path with price when it made the new high. There is a danger we may have seen a high and a correction could be in store ahead.

Trading Idea

Stay aside for the moment.

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