Market News
- Wall Street slumped on Monday, suffered their worst one-day losses since early December after U.S. designated China as a currency manipulator, as a result from a fall in China’s Yuan currency beyond the important 7.0 rate in a rapid escalation of the U.S.-China trade war.
- Dow Jones plunged nearly 1,000 points intraday before a late-day buying kicked in and limited the losses. Still, the Dow closed 760 points lower to 25,717. S&P 500 dropped 87 points, nearly 3% to close at 2,844. Nasdaq Composite also fell 278 points, recording its worst percentage drop of 2019 at 3.5%.
- China, which has historically controlled its currency, the Yuan, allowed it to fall to its lowest level on Monday against the dollar in more than a decade. The onshore Yuan broke above 7 per U.S. dollar and traded around 7.05. Trump accused Beijing thereafter of manipulating its currency, said in a tweet that this is a major violation which will greatly weaken China over time.
- Market View
- Asian stocks extended their already substantial losses this week after a trade war between Washington and Beijing abruptly worsened as a result of a drop in China’s Yuan value. Nikkei 225 index was down 420 points and Hang Seng index slipped 496 points.
- Along with the currency move, China also retaliated by suspending the purchases of American agricultural products and threatened to slap tariffs on the farm goods purchased after 3 August.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,350
Target price:
Protective stop:
Outlook
Price continued falling after breaking below the 50EMA and the key Fibonacci 62% retracement point. With the falling 50EMA, price could be falling towards the Fibonacci 162% projection point at 24,937 or even lower at its previous low at 24,603. Stochastic is falling at the moment. MACD has turned bearish with both of MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,610
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 162% correction point at 25,177 or even lower at Fibonacci 200% at 24,258. 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 : 7324
Target price :
Protective stop:
Outlook
Price invalidated the pennant pattern and broke below the rising trendline with a bearish candlestick last Wednesday. Price broke below the downtrend line last night with a large red candlestick last night. It is now sitting at the Fibonacci 127% correction point. Should price hold above this level, we could see a technical rebound to test the downtrend line again. Stochastic is falling and MACD has turned bearish with both of MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2811
Target price:
Protective stop :
Outlook
Price has been falling after breaking below the rising trendline last Wednesday. It breached both the resistance-turned-support level and 50EMA as well. Price is now trading near the Fibonacci 162% correction point. Should price hold above this level, we could see a rebound back to 2866 again. Stochastic is falling at the moment. MACD has turned bearish with both of MACD’s lines below the zero line.
Trading Idea
Wait for better trading idea.
