Market News
- Stocks slumped Tuesday on word that an impeachment inquiry will be started against President Trump that he tried to get foreign help to smear Democratic presidential front-runner Joe Biden. Dow Jones plunged 142 points, S&P 500 lost 25 points and Nasdaq Composite declined 118 points. Tesla was one of the big losers last night.
- U.S. House of Representatives will launch a formal impeachment inquiry over whether Trump sought help from the Ukraine to smear former Vice President Joe Biden, a front-runner for the 2020 Democratic presidential nomination. Trump has denied the claims.
- Trump said on Tuesday that he will not accept a “bad deal” with China, ahead of trade negotiations set to take place in the coming weeks. He would hold out for a “complete deal” that would rebalance the relationship between the two economic giants. Chinese Foreign Minister Wang Yi responded and said they should cooperate for mutual gain as well as for the rest of the world.
Market Views
- Asian stocks was rattled on Wednesday morning after the American lawmakers called for an impeachment inquiry into Trump, increasing the prospects of prolonged political uncertainty in the world’s largest economy. Hang Seng index fell 203 points while Nikkei 225 index declined 110 points.
- Trump also slammed China for its stubbornness in not acceding to American demands for more open markets. He also railed against Iran, saying the nation had blood lust.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,906
Target price:
Protective stop:
Outlook
Price is in a correction after a Tweezer Top candlestick pattern was formed near its all-time high resistance. The 20EMA is acting as support and has halted the price decline for the past two days even though there was intra-day penetration last night. A move below 26,680 could lead to a test of 26,520, which is the Fibonacci 38% retracement point and the resistance-turned-support level. Stochastic has turned down from the overbought extreme. MACD is still bullish at the moment.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,146
Target price:
Protective stop:
Outlook
The index has been falling for seven consecutive days after being capped by Fibonacci 62% resistance point, which is also the upper gap resistance. Price has moved below 20EMA and is now near to the key Fibonacci 62% retracement point. We could see a price rebound if price could stay above Fibonacci 62% at 25,900. A violation of 25,900 could lead to a test of previous low. Stochastic has turned down from the overbought extreme but MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7734
Target price :
Protective stop:
Outlook
A price decline last night has brought price to break below 7780 breakout level and 20EMA. The 20EMA is slanting downward at the moment, hinting at further price decline. We could see further correction to 7500. Price needs to break above 7780 to be bullish again. Stochastic has turned down from the overbought extreme but MACD is still bullish at the moment with both lines above the zero line.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2975
Target price:
Protective stop :
Outlook
The index was capped at 3022, which is near to its all-time high resistance at 3028. Price has been in the correction since then. The 20EMA is providing a support to price. A move and close below 20EMA would target the breakout level at 2940. Stochastic is turning down from the overbought region. MACD is still bullish at the moment
Trading Idea
Buy 2970 for 3020 with stop below 2930
