Market News
- U.S. stocks recovered from earlier losses on Thursday after data showed American services-sector activity slowed to a three-year low, fuelling expectations that Fed would cut interest rates to stem a wider economic downturn.
- The Dow had a slight gain of 122 points last night, closing higher at 26,201. S&P 500 was up 23 points while Nasdaq Composite rose 87 points, mainly contributed by the gains from Microsoft and Facebook.
- Global growth is slowing and U.S. growth is decelerating because of trade disputes and uncertainty caused by trade policy. A pivotal jobs report on Friday may contribute more evidence of whether the U.S.-China trade war is pushing the world’s largest economy toward a recession.
Market Views
- Asian stocks were muted on Friday morning ahead of the key U.S. job report that set to release today, which could help determine whether Fed would cut interest rates further. Nikkei 225 index fell 19 points and Hang Seng index declined 169 points.
- Hong Kong city’s government is set to discuss potential emergency regulation to ban face masks in protests. The embattled city has been rocked by weeks of protests that have periodically degenerated into violence.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,184
Target price:
Protective stop:
Outlook
The index broke below the Flag pattern and the resistance-turned-support level which is also the Fibonacci 38% correction point two nights ago. The 20EMA is falling at the moment, pointing at further price decline. A hammer reversal candlestick was formed at the key Fibonacci 62% level and the rising trendline. A move above 26,230 could see price rebounding to test the lower boundary of the Flag, or even 26,510. However, a move below 25,730 would invalidate the hammer and target the previous trough at 25,080. A bullish Stochastic crossover is likely in the coming session and MACD is still bullish.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,962
Target price:
Protective stop:
Outlook
The price decline from 27,443 has brought price down to a low of 25,740. Price rebounded yesterday but was resisted by the 20EMA. It could be forming a base low at 25,740. As long as this level holds, price could test the Fibonacci 38% at 26,490. A move below 25,740 could target for the low at 24,940. Stochastic is turning up at the oversold region and MACD is still bullish at the moment.
Trading Idea
Buy at 25,890 for 26,485 with stop at 25,580.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7630
Target price :
Protective stop:
Outlook
Price closed below the 7780 resistance level and is being resisted by the 20EMA. It opened with a gap down last night and rebounded at the rising trendline. As long as price stay above the trendline, there could be chances for price to test 7780 again. However, price will need to move above 7823 to be bullish again. A move below 7460 could lead to a test of 7400 or even lower at its previous low at 7220 with the falling 20EMA. Stochastic is crossing up and MACD is still bullish.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,351
Target price:
Protective stop :
Outlook
Price broke below the 20EMA two days ago after breaking down the resistance-turned-support level of 21,831. An indecision Doji candlestick was formed yesterday at the Fibonacci 50% correction point. A move above 21,480 is needed for a test of 21,831 again, while a break of 21,060 could hint at further price decline to 20,790. Stochastic is moving down but MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
