CFD Indices – Dow Gained On Decent NFP

Market News

  • Wall Street jumped on Friday as moderate jobs growth in September offered relief from a spate of dismal economic data that has rankled markets and fuelled concerns that the world’s largest economy may be sliding into a recession. Dow Jones and S&P 500 ended 1.42% higher while Nasdaq Composite rose 1.40% due to a rally in tech stocks.
  • U.S. unemployment rate fell to a 50-year low in September, with job growth increasing moderately, easing worries over a potential recession after weak data earlier last week showed a slowdown in American manufacturing and services.
  • Talks between Beijing and Washington will resume this Thursday as the world’s two largest economies work towards a truce in their protracted trade spat, although hopes for a definitive agreement are low.

Market Views

  • Asian markets were mixed on Monday morning as investors awaited a fresh round of U.S.-China trade negotiations set to begin later this week. Nikkei 225 index were lower by 63 points and Hong Kong is closed for a holiday today.
  • Worries about political instability in Hong Kong could hurt market sentiment after China’s army took the unusual step of issuing warnings to anti-government protesters in Hong Kong over the weekend.

Dow Jones Index
(CFD Symbol: US30)

Trend :
Recommendation :
Last : 26,448
Target price:
Protective stop:

Outlook
The index rebounded from the rising trendline which is also the Fibonacci 62% retracement point last Thursday. Price tested and is resisted at the key support-turned-resistance level on Friday. The declining 20EMA is acting as another resistance to the price. Price will need to move above the 20EMA to be bullish and for a test of 27,000. A failure penetration of the 20EMA and support-turned-resistance level would target the previous trough at 25,080. Stochastic is crossing up at the moment but is still weak but MACD is bullish.

Trading Idea

Wait for a better trading idea


Hang Seng Index
(CFD Symbol: HK50)

Trend : Bullish
Recommendation : Long
Last : 25,765
Target price: 26,485
Protective stop: 25,580

Outlook
Price is being capped by 20EMA for second consecutive days. 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 at the oversold region but is still weak at the moment.  MACD has turned bearish with both of the MACD’s lines below zero line at current moment.

Trading Idea

Buy at 25,890 for 26,485 with stop at 25,580 was triggered on Friday.


Nasdaq 100 Index
(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7712
Target price :
Protective stop:

Outlook
The index rebounded after hitting the rising trendline last Thursday. Price is below the 7780 resistance level and is being resisted by the 20EMA. As long as price stay above the trendline, there could be chances for price to test 7780 or 7823 again. 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 but is still weak at the moment.  MACD has turned bearish.

Trading Idea

Wait for better trading idea.


S&P 500 Index
(CFD Symbol: US500)

Trend :
Recommendation :
Last : 2937
Target price:
Protective stop :

Outlook
The two days’ price rebound was capped by the 20EMA. Price is now trading at near to the 2940 resistance level. Price could be testing 2993 if price could penetrate and stay above the 20EMA. A failure move above the 20EMA would lead to a downward movement to test its low at 2815 again. Stochastic is turning up but is weak at the moment. MACD is still bullish but the slow line is approaching the zero line.

Trading Idea

Wait for better trading idea.

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