CFD Indices 8 May 2019

Market News

  • US stocks fell sharply on Tuesday after a top U.S. trade representative Lighthizer indicated that higher tariffs on Chinese goods will increase this Friday, disappointing traders who had hoped that President Trump’s weekend tweet was just a negotiation tactic.
  • Lighthizer made his remarks after President Trump tweeted he would raise current 10% tariffs on $200 billion of Chinese goods to 25% on Friday. Trump also threatened to impose an extra 25% levy on another $325 billion of Chinese goods “shortly.” Hopes that Trump’s tweet was a negotiation tactics were dashed with Lighthizer’s remarks
  • Chinese Vice-Premier Liu He is expected to join a delegation in the United States this week. However, he will only attend the negotiations on Thursday and Friday. He was originally scheduled to attend negotiations from Wednesday through Saturday.

Market Views

  • Stocks in Asia declined following US market’s overnight decline as the market digested a possible derailment in trade talks between the two largest economies in the world. Shanghai Composite and Nikkei 225 slipped around 1.6% in early morning trade while Hang Seng index was down 1%.
  • A full-blown trade war would shave off 45 basis points from global economic growth, while China’s GDP would take a hit of between 1.2% and 1.5%.This is the view of UBS’s strategist Keith Parker.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bullish
Recommendation :
Last : 26,023
Target price:
Protective stop:

Outlook

We are maintaining our longer term bullish view for now. Price has declined lower but it has managed to stay within our Double Top target expectation and there was a divergence in MACD. Stochastic has also issued a divergence warning. We will wait for clearer indication of a reversal in trend.

Trading Idea

Wait for better trade idea.


Hang Seng Index

(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 29,152
Target price:
Protective stop:

Outlook

Price closed a gap that had supported the bullish trend since late March 2019. A rally that followed was unable to move above an important resistance as well. However, HK50 index is still above the Fibonacci 38% correction point of 2019’s rally. We think this decline could be corrective in nature and the longer term trend is still bullish despite the derailment of trade talks. We will wait for a clearer picture.

Trading Idea

Wait for better trading idea


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bullish
Recommendation :
Last : 7663
Target price
Protective stop:

Outlook

We maintain our longer term bullish view and see this decline as a vital correction after price reached new historical high. The correction has stayed above the important support point at 7589 and this reinforces our longer term bullish view. MACD is still bearish at the moment but Stochastic has managed to stay above the oversold extreme. We will wait for better trading idea and watch the support at 7589.

Trading Idea

Wait for better trading idea and signal


Nikkei 225 Index

(CFD Symbol: JP225)

Trend :
Recommendation :
Last : 21,563
Target price:
Protective stop :

Outlook

Price broke below the Fibonacci 161.8% correction point at 21,515. The next Fibonacci point is at 21,015 and MACD is still bearish and its trend strong. However Stochastic is oversold. This index needs to stay above 21,500 to turn upward again. We will need to watch the reaction at 21,500 for clue to the next direction.

Trading Idea

Wait for better trading idea.


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