Market News
- U.S. stocks were mixed after the close on Wednesday as investors remained unsure of trade deal outcome between the U.S. and China. The Dow Jones index was up 2 points at 25,967.33, while the S&P 500 was down 4 points to 2,879.42 and the Nasdaq Composite fell 20 points to 7,943.32.
- White House Press Secretary Sarah Sanders affirmed President Donald Trump’s tweet earlier that China is coming to Washington this week to strike a deal. Trump had threatened to impose additional tariffs on Chinese goods after China backtracked on key aspects of a trade deal draft.
- China said “necessary” countermeasures will be taken if U.S. raises tariffs on Friday as Trump threatened on Sunday. The Chinese Commerce ministry announced that Beijing will retaliate if U.S. tariffs on $200 billion of Chinese goods are hiked to 25% from 10%.
Market Views
- Asian shares hit six-week lows in early trade on Thursday as increased tensions ahead of key Sino-U.S. trade negotiations fanned fresh concerns about the outlook for the global economy.
- Analysts said that the rhetoric on trade will be ramped up heading into the final stages of the talks, but ultimately cooler heads will prevail and a deal will be struck.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,876
Target price:
Protective stop:
Outlook
We are maintaining a neutral view for now until Friday when outcome of tariffs is clearer. 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. However 20EMA is bearish and its gradient is steep, warning of a strong bearish trend. We will wait for clearer indication and outcome of trade talks.
Trading Idea
Wait for better trade idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,485
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 price is likely to decline to the Fibonacci 38% at 28,245 or 50% point at 27,600. Extend of the decline will depend on the outcome of trade talk. We will wait for a clearer picture.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7582
Target price
Protective stop:
Outlook
This decline has come to an important support point at 7589. If this support fails to hold, the next point is at 7482. MACD is still bearish and moving lower. Stochastic is also moving lower. 20EMA is bearish and its gradient steep, hinting of a strong bearish trend. We will wait for outcome of trade talk this Friday.
Trading Idea
Wait for better trading idea and signal
Australian 200 Index
Trend : Bullish
Recommendation :
Last : 2870
Target price:
Protective stop :
Outlook
On the daily chart, Stochastic is declining but MACD is still bullish. The decline looks corrective especially after a long rally that started in late Dec 2018. However the corrective decline could be steep as the Fibonacci 38% correction point is at 2712. Much will depend on trade tariffs outcome this Friday. We will wait for a clearer picture.
Trading Idea
Wait for better trading idea.
