CFD Indices 12 June 2019

Market News

  • Dow ended the day down by 14 points, snapping its six-day winning streak as U.S. stocks were taking a breather after posting strong gains to start off June. The S&P 500 ended down 0.04% and Nasdaq Composite slipped 0.01%.
  • President Trump said on Tuesday he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees to four or five “major points” which he did not specify.
  • Market expectation on Fed’s rate cut has been rising amid weakening U.S. economic data and growing global tension. Investors are expecting at least two rate cuts by the end of 2019.

Market Views

  • Asian stocks were mixed on Wednesday morning following on Wall Street that saw the end of the Dow Jones’s winning streak. Hang Seng plunged 357 points amid a mass protest while Australia 200 rose 12 points. Nikkei 225 index slipped 18 points.
  • Trump said in a tweet that the dollar is at a “big disadvantage” as Euro and other currencies are devalued against the dollar. He added that Federal Reserve doesn’t have “a clue.”

Dow Jones Index

(CFD Symbol: US30)

Trend :
Recommendation :
Last : 26,040
Target price:
Protective stop:

Outlook

Price has hit 26,144, the support-turned-resistance level, which is also the Fibonacci 38% of the decline from 1st May to 14th May, with a gap up on Monday. Price has been resisted at this level for the past 2 days as well. Stochastic is into the overbought region and could be turning down soon. MACD has not given any reversal hint as yet. We will wait for confirmation of the reversal.

Trading Idea

Wait for better trading idea.


Hang Seng Index

(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 27,465
Target price:
Protective stop:

Outlook

Price broke above last week consolidation range with a gap up on Monday. It also closed above its previous gap resistance with a bullish candlestick. However, a shooting star candlestick was formed yesterday. Watch out for the reaction when price reaches the gap support zone near 27,150. Stochastic is moving out of oversold extreme but the MACD is still bearish.

Trading Idea

Sell above 27,400 with a stop above 27,707 for 26,670.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7500
Target price
Protective stop:

Outlook

Price moved above 20EMA after climbing higher from a low formed at 6935. Price tested 7570 for the past two days but was resisted and closed lower. An indecision Doji candlestick was formed yesterday. Price could be reaching a top and we could see a potential price retracement. Stochastic is moving higher and is near the overbought region. MACD is still bearish at the moment despite a 6-day rally.

Trading Idea

Sell above 7500 with a stop above 7595 for 7280.


Nikkei 225 Index

(CFD Symbol: JP225)

Trend :
Recommendation :
Last : 21.198
Target price:
Protective stop :

Outlook

Price has been climbing higher after reaching a low at 20,291. Price closed
above the 20EMA with a gap up on Monday. Price is currently consolidating and supporting at the 20EMA. This could mark the end point of the correction and we could see a price advance back to 21,450. MACD has a bullish divergence warning while Stochastic has moved out of oversold extreme.

Trading Idea

Wait for confirmation of the reversal.


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