CFD Indices 11 April 2019

Market News

  • The 30-stock Dow Jones Index ended Wednesday 7 points higher after minutes of FOMC showed most Fed members do not expect a rate hike in 2019 while U.S. inflation remains benign.
  • The Federal Reserve released the minutes of its March monetary policy meeting, with no change in interest rates expected in 2019. However the US central bank left the door open for more hikes if the economy improves.
  • Data showed U.S. consumer prices increased by the most in 14 months in March but underlying inflation remained benign. Global interest rates are expected to remain low after ECB took a dovish stance in its monetary policy meeting.

Market Views

  • Asian stocks held near eight-month highs on Thursday on hopes of a Sino-US trade deal after Mnuchin say both US and China have pretty much agreed on enforcement mechanism.
  • Market optimism was boosted when Treasury Secretary Mnuchin told CNBC that U.S. and China have agreed to establish enforcement offices that will deal with ongoing matters when a deal is struck.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bullish
Recommendation :
Last : 26,149
Target price: 26,970
Protective stop: 26,070


Price is trading just below the 20EMA but is holding above the important support at 26,070. A break below 26,070 would be bad and it could lead to a decline to 25,600. Stochastic is rising from oversold extreme but MACD is bearish. Above the support could mean a test to the high again. Watch the support at 26,070 for directional clues.

Trading Idea

Watch the support at 26,070 for directional clues.

Hang Seng Index

(CFD Symbol: HK50)

Trend : Bullish
Recommendation :
Last : 29,992
Target price: 30,650
Protective stop: 29,668


Price reached another new high at 30,311 on Monday and could be heading higher to the Fibonacci 161.8% target at 30,650 as long as price stays above 29,668. Stochastic has a bearish divergence warning but MACD is still bullish. The trend is still bullish and could be heading higher to 30,650 but caution is advised as divergence warnings are starting to appear.

Trading Idea

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

Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bullish
Recommendation :
Last : 7616
Target price: 7685
Protective stop: 7535


Price made another new high at 7636 last night. This continues the bullish trend which could bring price to 7685, which is 127% of its previous rally. MACD is still bullish but there was a divergence warning. Stochastic also has a divergence warning and is moving into overbought extreme. We could be moving to 7685 but we could be approaching market top soon and caution is advised

Trading Idea

Keep long for 7685 with protective stop below 7535

Nikkei 225 Index

(CFD Symbol: JP225)

Trend : Bullish
Recommendation :
Last : 21,723
Target price: 21,978
Protective stop : 21,460


Price reached a high of 21,973 on Monday and has moved lower to 21.556. Price managed to stay above 21,530 to avert an end to the bullish trend. Price is likely to test the high of 21,973 again. Stochastic and MACD are both rising but MACD is still bearish.

Trading Idea

Wait for better trade idea.

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