Market News
- U.S. stocks fell marginally for a second days, pressured by declines in tech and bank shares, pausing a sharp rally to start off June. Dow Jones was lower 43 points; S&P 500 declined 5 points while Nasdaq Composite dropped 29 points.
- Trump said at a news conference that he had no deadline for China to make progress towards a deal before facing further penalty. Trump has said he plans to meet with Xi at the G20 summit in Japan, Beijing has not confirmed any planned talks yet.
- Oil prices plunged on Wednesday as there was an unexpected increase in U.S. crude inventories for the second week in a row, against the backdrop of fears that fuel demand could weaken amid the U.S.-China trade fight and a global economic slowdown.
Market Views
- Asia Pacific shares stuttered on Thursday, dogged by the uncertainty over an intractable U.S.-China trade dispute, while oil prices flirted with five-month lows thanks to higher U.S. crude inventories and a bleaker demand outlook. Nikkei dropped 166 points and Hang Seng plunged 262 points.
- Investors will be watching out for market reaction from Hang Seng index amid violent clashes between protesters and riot police over a controversial extradition bill.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,924
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 gradually coming down after being resisted at this level for the past 3 days. 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 : 26,932
Target price:
Protective stop:
Outlook
A bearish evening star was formed yesterday, hinting of a possible price top. Price moved below the 20EMA as well. Price could be on the way down testing the low at 26,665 again. A move below 26,665 would bring price lower to 26,327. Stochastic is moving out of oversold extreme but still weak. MACD is still bearish and the fast line could be turning down again.
Trading Idea
Wait for better trading opportunities.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7439
Target price
Protective stop:
Outlook
Price moved above 20EMA after climbing higher from a low formed at 6935. Price tested 7570 but an indecision Doji candlestick was formed on Tuesday. Price could be reaching a top and we could see a potential price retrenchment. Price could be moving towards the 20EMA at 7381. Stochastic is moving higher and is near the overbought region. MACD is still bearish at the moment.
Trading Idea
Sell above 7500 with a stop above 7595 for 7280.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 20,975
Target price:
Protective stop :
Outlook
Price reached a top at 21,343 with an indecision spinning top candlestick, which is near its previous high and the Fibonacci 38% of the decline from 3rd to 13th May. A red colour bearish candlestick was followed through yesterday. These could hint at a possible price top. Price could be testing 20,783 or even the low at 20,291 again. MACD is still bearish despite having a bullish divergence warning. Stochastic is near the overbought region and could be turning down.
Trading Idea
Wait for confirmation of the reversal.
