Market News
- U.S. shares on Thursday staged a partial recovery from their losses in the previous session. Dow Jones was up 43 points and both S&P 500 and Nasdaq Composite were higher by 0.2%. The market’s gains were kept in check as worries over the global economy and trade persisted.
- Treasuries have benefited from haven demand, sending yields on 10-year notes down to 2.19% Friday compared with 2.50% at the start of the month. Plunging yields this month, along with a yield curve inversion, have raised concerns about slowing economic growth.
- Chinese Vice Foreign Minister Zhang Hanhui said Thursday that provoking trade disputes amounted to “naked economic terrorism”. China has also halted purchases of American soybeans in another move in the escalated trade war with the U.S., according to a Bloomberg report.
Market Views
- Stocks in Asia Pacific were mixed in Friday morning trade as China’s manufacturing activity, the official manufacturing Purchasing Managers’ Index (PMI), declined more than forecasted in May. Nikkei was down 169 points and Hang Seng was up 9 points.
- President Trump opened a new front in the trade war, announcing that fresh tariffs would be slapped on all Mexican goods starting from June 10, in an effort to curb illegal immigration.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 24,988
Target price:
Protective stop:
Outlook
Price has moved below the support level of 25,229. Yesterday, price tried to move back above 25,229 but failed. Our bearish view remains unchanged. The 20EMA is still declining and bearish. Price could be on the way down to 24,800 or even 24,707 which is Fibonacci 38% correction point of 2019’s rally. MACD is bearish and Stochastic is moving lower.
Trading Idea
Wait for better trade idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,051
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 on the way down and are approaching 26,944. Stochastic is into oversold extreme but still weak at the moment. MACD is also bearish. We believe price is likely to test 26,944. A move below 26,944 would bring the price lower to 26,641.
Trading Idea
Wait for better trade idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7196
Target price
Protective stop:
Outlook
Price has moved below the support at 7251 and is hovering around 7192, which is the Fibonacci 38% correction point of 2019’s rally. MACD is bearish and Stochastic is still weak at the moment. We could see price move lower to 6987, the Fibonacci 50%, if it could not hold at 7192 support.
Trading Idea
Wait for better trade idea.
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6428
Target price:
Protective stop :
Outlook
Price moved below 6443 breakout level. Currently, price is supported at 6407, the Fibonacci 50% correction point of May 2019’s rally. Price is also trying to test its overhead 20EMA resistance at 6436. Stochastic is approaching its extreme oversold zone and MACD is still bullish. We could see price move higher to test its previous high if price could stand above 6443.
Trading Idea
Wait for better trade idea.
