Market News
- U.S. stocks slid on Wednesday, led by the tech sector amid trade worries as a lengthy trade war between the two largest economies loom. . Dow Jones closed 100 points lower, S&P500 dropped 8 points and Nasdaq Composite lost 34 points.
- According to South China Morning Post, China is considering dropping purchases of natural gas from the U.S., after President Trump imposed a restriction on Chinese telecom giant Huawei. China is also rethinking its entire economic relationship with the U.S.
- U.S. central bank will not make any moves regarding interest rates “for some time” even if the economy improves. Investors are also worried of an economy slowdown.
Market Views
- Asia markets declined in Thursday morning amid the recent escalation in trade tensions between the U.S. and China was fast morphing into a technology cold war between the world’s two largest economies. Hang Seng and Nikkei 225 index were down by around 1% while Australian 200 Index was down 20 points.
- CNBC said that there is unlikely to have a speedy resolution to the trade war between the two largest economies as a trip to Beijing to resume trade negotiations has not been scheduled yet according US Treasury Secretary Mnuchin.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,875
Target price:
Protective stop:
Outlook
Price has recovered from a low of 25,229 to 26,000 but the rally could come into strong resistance around 26,000 with previous price highs and 20EMA providing resistance. Stochastic has been climbing higher but both MACD and 20EMA are bearish. Price will need to cross over 26,000 to be bullish again. While we remain long term bullish, it is not clear if the corrective decline is over
Trading Idea
Wait for better trade idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,886
Target price:
Protective stop:
Outlook
This index is likely to test the Fibonacci 50% correction point of 27,595 again. Yesterday it was unable to move higher after testing the Fibonacci support. A move below the Fibonacci 50% point would target the 62% point at 26,944. While Stochastic is into oversold extreme, MACD is still bearish but could be turning around. We will put yesterday’s trading idea of buying at Fibonacci 50% point on hold and watch the reaction for clues.
Trading Idea
Wait for clearer signal.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7427
Target price
Protective stop:
Outlook
Yesterday was an Inside Day chart pattern. It is a sign of indecision and consolidation. As MACD is bearish, we are expecting price to test the support zone of 7202-7247 again with 20EMA also bearish. 20EMA is also acting as a resistance at 7556. We would prefer to wait for a safe location to get into a bullish position.
Trading Idea
Wait for dip to 7202-7247 to buy for a rally to 7520 with stop at 7165.
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6554
Target price:
Protective stop :
Outlook
Despite the trade talk worries, this index has made another new high today for a third consecutive day. The target for this breakout is at 6660, based on Ichimoku V structure price forecasting. Both Stochastic and MACD are rising. MACD is bullish and 20EMA is also bullish. Momentum and trend are indicating this index can move higher.
Trading Idea
Buy at 6490 for 6660 with stop below 6410.
