Market News
- Stocks fell on Tuesday after President Trump renewed his attacks on Beijing, decreasing hope the two largest world economies will reach a trade deal. Dow Jones was down 23 points, S&P 500 was lower 7 points and Nasdaq Composite lost 19 points.
- Trump accused China of backing off on a pledge to buy more U.S. agricultural products, warning on Tuesday that the outcome for China could be worse if it continues to stall. However, China insists it has bought the agricultural products.
- As a new round of U.S.-China trade talks started in Shanghai, Trump tweeted that the outcome could be no agreement or a harsher one if he wins re-election in November 2020. Trump’s comments suggest that the trade negotiations are not going well, adding a new negative factor to the markets.
Market Views
- Stocks in Asia weakened in early trade on Wednesday, rattled by fresh trade war concerns following threats from Trump to China. Nikkei slipped 211 points and Hang Seng fell 233 points.
- Later in the day, the U.S. Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago. Trump reiterated his call for the Fed to make a large interest rate cut, saying he was disappointed on the central bank as it had put him at a disadvantage by not acting sooner.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,258
Target price:
Protective stop:
Outlook
Price has been consolidating in a tight range for the past 13 days. Support is at 27,107 and 20EMA support is providing another layer of support as well. As long as the index stays above 27,100 we think there is a good chance of this index going to the Fibonacci 162% projection point at 28,000. MACD is still bullish but there was a previous divergence warning. Stochastic is also near to its overbought extreme.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,881
Target price:
Protective stop:
Outlook
Price has been capped by the declining trendline but was supported by the gap support and Fibonacci 38% retracement point at 28,020. However, this support level was breached yesterday with a bearish red candlestick. The 20EMA is also pointing downwards, hinting at the possible bearish trend ahead. Price could be on the way falling to 27,230. The Stochastic is falling at the moment. The MACD is also weak and the slow line is very near to the zero line.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Bullish
Recommendation : Long
Last : 7976
Target price : 8100
Protective stop: 7920
Outlook
Price has been hovering at the previous high resistance at 7979 for the past 4 days. It is currently consolidating within a pennant pattern. We could see price moving higher towards 8109 or 8260, should price stay above the 7979. The Stochastic is at the overbought region but the MACD is still bullish and above the zero line.
Trading Idea
Buy 7998 for 8100 with stop below 7920.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,545
Target price:
Protective stop :
Outlook
Price was resisted at 21,831 for the second times. Yesterday, price attempted to test the resistance again but failed and closed lower. The 20EMA could be turning down and is providing a layer of support. Price could be ranging from 21,831 to 20,991. There is also a divergence warning given from the MACD. Stochastic is turning down and both MACD lines are also falling and approaching the zero line.
Trading Idea
Wait for better trading idea.
