Market News
- Wall Street’s major indexes sank on Monday as hopes for U.S.-China trade progress faded, even though the indexes briefly turned higher after positive tweets about the trade talks in the late session. Dow Jones slid 95 points, S&P 500 fell 13 points and Nasdaq Composite declined 26 points.
- Prospects for progress in the trade talks dimmed on Monday after Washington blacklisted Chinese companies over Beijing’s treatment of predominantly Muslim ethnic minorities, and Trump said a quick trade deal was unlikely.
- Trump also told reporters that he hoped Beijing found a humane and peaceful resolution to the ongoing political protests in Hong Kong, and warned the situation had the potential to hurt trade talks.
Market Views
- Stocks in Asia Pacific inched up in early trade on Tuesday, with investors cautious ahead of tense U.S.-China trade talks while the Turkish lira slipped over concerns about Ankara’s planned incursion in northern Syria. Nikkei 225 index advanced 221 points while Hang Seng index gained 345 points.
- Oil prices settled slightly lower, paring early gains as hopes of a comprehensive U.S.-China trade deal faded and a new poll showed analysts expect U.S. crude oil inventories to have risen last week.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,554
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 : 26,173
Target price: 26,485
Protective stop: 25,730
Outlook
Price is capped by the 20EMA for a third consecutive day. It could be forming a base low at 25,740. As long as this support 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 from the oversold region but MACD has turned bearish with both of the MACD’s lines below zero line at current moment.
Trading Idea
Bring stop higher to 25,730 and keep profit target at 26,485
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7760
Target price :
Protective stop:
Outlook
The index rebounded after hitting the rising trendline last Thursday. Price is resisted by the 7780 resistance level. 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. There is a bullish MACD crossover.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 21,616
Target price:
Protective stop :
Outlook
There was a Doji candlestick formed at Fibonacci 50% correction point last Thursday. A bullish candlestick was followed-through on Friday forming a Morning Doji Star. The 20EMA is acting as a resistance to the price at the moment. We could see price testing 21,831 or even higher at 22,060 if price can penetrate and close above 20EMA. Stochastic is going to cross up and MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
