CFD Indices 18 June 2019

Market News

  • Overnight on Wall Street, Dow Jones rose 22 points while S&P 500 gained 2 points. The Nasdaq Composite was up 48 points, led by gains in Facebook and Netflix. Stocks notched slight gains as investors looked ahead to a crucial Federal Reserve meeting this week.
  • Worries over the economy have increased recently after jobs growth and manufacturing activity slowed last month in the U.S. and China, as the lingering trade tensions between U.S. and China slowed economic and manufacturing activities.
  • A two-day monetary policy meeting kicked off today. The Fed will make its monetary policy announcement on Wednesday afternoon 2pm New York time. The market has been clamouring for lower rates amid indications of potentially slower economic growth.

Market Views

  • Asia Pacific stocks were mixed in Tuesday morning as investors awaited the start of a closely-watched meeting by Fed. Nikkei was down 56 points while Hang Seng rose 188 points.
  • On the U.S.-China trade front, hundreds of businesses stateside are attempting to send a message to Trump’s administration to discourage them from increasing tariffs on China. U.S. Commerce Secretary Wilbur Ross said Trump is “perfectly happy” to impose new tariffs on China if the two economic powerhouses don’t “make a deal.”

Dow Jones Index

(CFD Symbol: US30)

Trend : Bullish
Recommendation : Long
Last : 26,138
Target price: 26,700
Protective stop: 25,850

Outlook

Price has been consolidating within a flag pattern after hitting 26,144, the support turned resistance level, which is also the Fibonacci 62% of the decline from 1st May to 14th May. Price broke up the flag pattern and hit 26,144 on last Friday. Price is likely to test its previous high at 26,710. Stochastic is into the overbought region but still looks strong at the moment while MACD is rising towards its zero line.

Trading Idea

Buy around 26,170 for a test to 26,700. Stop can be placed below 25,850.


Hang Seng Index

(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 27,404
Target price:
Protective stop:

Outlook

A bearish evening star was formed on last Wednesday. Yesterday, price tried to test the 20EMA but closed lower. Price is capped by its overhead bearish 20EMA. We think price could be on the way down to test the low at 26,665 again. A move below 26,665 would bring price lower to 26,327. Stochastic has turned down and MACD is still bearish at the moment.

Trading Idea

Wait for better trading opportunities.


Nasdaq 100 Index

(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7544
Target price
Protective stop:

Outlook

Price moved above 20EMA after climbing higher from a low formed at 6935. Price is consolidating after a Doji candlestick was formed on last Tuesday. Price could be reaching a top and we expect price to cap at 7595-7638 resistance zone. Price could be heading towards the 20EMA at 7423 thereafter. Stochastic is in the overbought region and could be turning down. MACD is still bearish at the moment.

Trading Idea

Watch the overhead resistance at 7640 for clues.


Nikkei 225 Index

(CFD Symbol: JP225)

Trend :
Recommendation :
Last : 21,061
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 thereafter. These could hint at a possible price top. Price is currently hovering around the 20EMA. It could be testing 20,783 or even the low at 20,291 again. MACD is still bearish despite having a bullish divergence warning. Stochastic has turned down.

Trading Idea

Wait for confirmation of the reversal to short.

Related Posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.