Market News
- U.S. stocks ended a low-volume trading session little changed on Monday. While the Dow Jones fell by 48 points, the S&P eked out a gain of 3 points helped by energy stocks. The 30-stock Dow Jones Index was dragged lower by Boeing.
- Wall Street also focused on the oil market as U.S. crude rose 2.7% after the Trump administration announced that Iranian oil buyers would need to cease import by 2nd May as US ends waivers for 8 countries on Iranian oil import. Energy shares rose along with oil prices. The S&P energy index jumped 2.1% in its biggest one-day percentage gain since January.
- On the data front, existing home sales for March fell 4.9% to a seasonally adjusted annual rate of 5.21 million. The drop in March came after an 11.2% surge in February.
Market Views
- Asian shares were little changed on Tuesday, hovering not far from nine-month peaks hit last week, with concerns China may slow the pace of its policy easing curbing the market’s enthusiasm.
- China stocks had fallen 1.7% from a 13-month high on Easter Monday as comments from China’s policy-making committee to pursue structural changes rather than add stimulus raised investor fears after some signs of stabilization in the world’s second-largest economy.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation :
Last : 26,507
Target price: 26,688
Protective stop:
Outlook
Price made a new high of 26,634 on Monday, continuing the bullish uptrend. 20EMA is still rising and is currently supporting the index. Fibonacci 127% price target is at 26,682. MACD is still bullish and there has been no divergence warning as yet. The trend looks strong enough to drive the index to 26,682.
Trading Idea
Buy on dip around 26,470 for a push to 26,688 with stop at 26,340.
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation :
Last : 30,009
Target price: 30,650
Protective stop:
Outlook
This index has been in a range and has continued in the range on Tuesday. The range boundaries are at 30,349 and 29,712. MACD is flat and neutral at the moment while Stochastic is heading lower. 20EMA is also flat at the moment. This index could be in a consolidation. Watch the range breakout for direction.
Trading Idea
Wait for the index to breakout and follow in that direction.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation :
Last : 7720
Target price : 7802
Protective stop:
Outlook
Price made a new high on Monday at 7726 which continues its uptrend momentum. 20EMA is bullish and rising. The 161.8% Fibonacci projection point lies at 7802 and that could be the next target. MACD is still bullish and rising but Stochastic is turning down from overbought extreme.
Trading Idea
Look for dip to support at 7710 to get into a long position for 7802.
S&P 500 Index
(CFD Symbol: US500)
Trend : Bullish
Recommendation :
Last : 2908
Target price: 2940
Protective stop :
Outlook
Price made a new high of 2918 last Wednesday but has been moving sideways since. The next target is at Fibonacci 161.8% projection point of 2946, which is above the historical high of 2940. Stochastic is rising but MACD is neutral at the moment around the zero line.
Trading Idea
Wait for a dip at 2898 to get into a long position for 2940
