Market News
- Equities took a major blow last week as President Trump stoked U.S.-China trade fears with the announcement of more tariffs, leading to the S&P 500 and Nasdaq Composite declining more than 3%, their biggest weekly drops of 2019. Dow Jones also had its second-worst week of the year, sliding 2.6%.
- Last Friday, the Dow closed 98 points lower after plunging 334 points earlier in the day. S&P 500 was lower 21 points and Nasdaq Composite fell 107 points. The major indexes dipped below their 50-day moving averages, a key technical levels watched by investors.
- China’s spokesperson at the foreign ministry, Hua Chunying, said at a daily press briefing on Friday morning that Beijing would have to take countermeasures if Washington commits to putting more tariffs on Chinese goods.
Market Views
- Stocks in Asia fell on Monday morning as investors fretted over Trump’s escalation of the trade tariffs with China. China’s Caixin PMI came in at a 5-month low, pulling the equity markets lower as well. Nikkei 225 index slipped 496 points and Hang Seng index plunged 656 points.
- Aside from the renewed trade jitters between Washington and Beijing, investors will also watch for market reactions in Hong Kong as a general strike aimed at bringing the city to a pause today.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,248
Target price:
Protective stop:
Outlook
Price broke below the consolidation support that ranged for 13 days with a long bearish red candlestick last Wednesday. It continued falling after breaking below the 50EMA and the key Fibonacci 62% retracement point. We see price falling towards its previous low at 25,879. Stochastic is falling at the moment and has not reached the oversold extreme as yet. MACD is still bullish although the fast line is below the zero line
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,313
Target price:
Protective stop:
Outlook
Price broke below the rising trendline and the Triangle chart pattern last Thursday. With the falling 20EMA, we are expecting further price decline. Price broke below its previous low point after a huge gap was seen on Friday. Price could be heading towards the Fibonacci 127% projection point at 26,015, which is also the Triangle’s chart pattern target. Stochastic is at the oversold region but is still falling. MACD has also turned bearish with both of MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7605
Target price :
Protective stop:
Outlook
Price invalidated the pennant pattern and broke below the rising trendline with a bearish long red candlestick on Wednesday. It broke below the 50EMA as well. We could see the index falling towards the downward trendline at 7529. Do watch out for the price reaction when it hit the downtrend line. If price is unable to hold above this trendline, it could fall further to the Fibonacci 62% correction point at 7355. Stochastic is falling but the MACD is still bullish at the moment
Trading Idea
Wait for better trading idea
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 20,585
Target price:
Protective stop :
Outlook
Price broke below the Rectangle chart pattern that ranging from 21,831 to 20,991. With the falling 20EMA, we are expecting further price decline. We could see price testing its previous support level at 20,298 again. Stochastic is turning down and has yet to reach the oversold extreme at the moment. MACD has also turned bearish with both of the MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.