Market News
- U.S. stocks were mixed after the close on Thursday with the lowest volume since Dec 24 2018. The Dow dipped 14 points while the S&P 500 posted a marginal gain of 0.11 point. Nasdaq Composite Index was down 16 points.
- Worries over a sharp slowdown in U.S. growth were eased as data showed the number of Americans filing applications for unemployment benefits last week dropped to a 49 and half-year low.
- As Wall Street looked ahead to the start of the earnings season starting today, sentiment were boosted after FOMC minutes on Wednesday night showed the US central bank does not expect to raise interest rate in 2019 and Brexit culminated in a flexible extension to Oct 31, 2019.
Market Views
- Shares in Asia were mixed in Friday morning trade as hopes rise on progress on the U.S.-China trade front.
- Wall Street Journal reported that China agreed to open its cloud computing sector to foreign companies in an attempt to sweeten a deal with the U.S. This comes after Mnuchin’s remark that Beijing and Washington had pretty much agreed on an enforcement mechanism.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation :
Last : 26,185
Target price: 26,970
Protective stop:
Outlook
Price dipped below the important support at 26,070 but managed to recover. Price is now capped at the 20EMA. Stochastic is rising from oversold extreme but MACD is bearish. Above the support area could mean a test to the previous high. Below this support would be bearish. Watch the support at 26,050 for directional clues.
Trading Idea
Watch the support at 26,050 for directional clues.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation :
Last : 29,813
Target price: 30,650
Protective stop: 29,668
Outlook
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 is turning up from oversold extreme while MACD is neutral at the moment. The trend is still bullish and could be heading higher to 30,650 but caution is advised as a move below 29,668 would negate this bullish view.
Trading Idea
Keep long for 30,650 with protective stop below 29,668.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation :
Last : 7600
Target price: 7685
Protective stop: 7535
Outlook
Price made a new high at 7636 and this continues the bullish trend which could bring price to 7685. This is 127% Fibonacci projection of the previous rally. MACD is still bullish but there was a divergence warning. Stochastic is moving into oversold 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 : 21,863
Target price: 21,978
Protective stop : 21,460
Outlook
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
Keep long for 21,978 with stop at 21,460.
