Market News
- US markets were closed for a holiday last night. Attention was on Trump’s visit to Japan with the president saying during a Monday news conference with Japan’s PM Shinzo Abe that he hoped to announce a trade deal with the country soon.
- Trump said his goal was to remove trade barriers so as to give U.S. exports a fair footing in Japan. He described the U.S. trade imbalance with Japan as “unbelievably large” but expressed hopes to address that.
- The U.S. president’s visit comes amid an ongoing trade war between Washington and Beijing, with China standing firm against the demands of the U.S. to change its state-run economy.
Market Views
- Stocks in Asia rise as Trump continues his Japan visit with markets hoping a trade deal could be concluded between Japan and U.S. Nikkei is up 80 points and Australian 200 index is higher by 35 points. Hang Seng is up 130 points.
- A commentary published over the weekend by state news agency Xinhua said U.S. requests for China to address economic issues was an infringement on Beijing’s core interests and indicated China will never give in to US demands to change its state-run economy.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,686
Target price:
Protective stop:
Outlook
Price consolidated in the previous night with the U.S. on holiday. Our view remains unchanged. We expect 20EMA at 25,849 to provide resistance. We maintained our bearish view and we are expecting price to test 25,229 or even 24,800. MACD is bearish but is not strongly bearish at the moment. Stochastic is moving higher but is weak.
Trading Idea
Wait for better trade idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,435
Target price:
Protective stop:
Outlook
Price moved below the Fibonacci 50% correction point and the next target would be the 62% point at 26,944. We are already on the way to 26,944. Stochastic is into oversold extreme but MACD is still bearish. We believe price is likely to test 26,944 but price could find a temporary bottom around this area.
Trading Idea
Wait for a dip to 26,950 to buy for 28,245 with stop below 26,650
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7337
Target price
Protective stop:
Outlook
Price consolidated overnight with U.S. on holiday. Our view remains the same as yesterday. We are looking for this index to move lower to 7192 which is the Fibonacci 38% correction point of 2019’s rally. MACD is bearish and Stochastic is still weak at the moment.
Trading Idea
Wait for dip to 7192 to buy for a rally to 7500 with stop below 7140.
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6531
Target price:
Protective stop :
Outlook
After breaking up above 6443 to reach a new high, price has been consolidating above the previous high. The trend is still bullish as price is above the 20EMA and above the previous high. MACD is bullish and moving higher. Stochastic is inside the extreme overbought zone.
Trading Idea
Wait for dip to 6448 to buy for a rally to 6600 with stop below 6360.
