- U.S. stocks gained last night as investor sentiment was buoyed by a string of corporate earnings beats and encouraging geopolitical developments. The Dow Jones index rose 23 points, S&P 500 index was up 8 points and Nasdaq Composite index closed 32 points higher.
- Britain and the European Union agreed to a severance deal, moving closer toward wrapping up three years of uncertainties after Britons voted to leave the bloc. This deal needs to gain UK parliament approval and with DUP not supporting this agreement, there is still a lot of uncertainty.
- Market sentiments were boosted as well as the upbeat statements from Beijing and Washington fuelled hopes that a phased agreement could ease the long-running U.S.-China trade negotiation that has rattled the global markets.
- Asian stocks markets mostly declined on Friday morning, as China released worse than expected GDP data as the protracted trade conflict with the US continues to take its toll on the Chinese economy. Nikkei 225 index rose 49 points while Hang Seng index is down 24 points.
- China reported 3Q GDP number showing the Chinese economy grew 6.0% from a year ago, which was weaker than market expectation of 6.1%. It was the slowest growth pace in the past 27 years, as trade dispute with the US over the past 15 months weighed on the Chinese economy.
Dow Jones Index
(CFD Symbol: US30)
Last : 27,023
The index has been moving higher after rebounding from the rising trendline. It is now near to its previous high of 27,310. The 20EMA is rising at the moment but the ranges for the past two days are comparatively small. This is a sign of indecision. We could see a possible correction back to test the 20EMA. Price will need to move above 27,125 for a test of 27,310 and its all-time high at 27,403. Stochastic is moving up at the moment. There was a bullish MACD crossover but the MACD is still bearish.
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Last : 26,977
The index has rebounded from the base low at 25,230 and has moved above the rising 20EMA. Price managed to stay above 26,490 for the past four days. It is on the way moving higher to test its previous high at 27,440. Stochastic is moving up at the moment. MACD has a bullish crossover in the bearish zone but MACD is still bearish at the moment.
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 7931
Target price :
Price has moved above the key 7780 resistance level after rebounding from the rising trendline. It is now near to its previous peak of 7976. A Doji candlestick was followed-through last night after a Hanging Man candlestick which could hint of potential top. We could see a possible price correction to test 7780-7815 support zones. The index will only turn bearish if it breaks below the rising trendline. Stochastic is moving higher but is at overbought extreme and MACD is still bearish.
Sell 7930 with stop at 8041 and profit target at 7800
Australian 200 Index
(CFD Symbol: AUS200)
Trend : Bearish
Recommendation : Short at 6759
Last : 6689
Target price: 6618
Protective stop : 6805
The index is capped by a declining trendline formed since end-July. Price closed with a Bearish Engulfing candlestick pattern yesterday, confirming the end of the rally and we expect a price correction. It is now sitting at the 20EMA but we don’t think this support can hold. Price is likely to move downwards towards 6618 or even lower to test the rising trendline. Stochastic could turn down in the coming session and MACD is still bearish.
Sell 6759 for 6618 with stop above 6805 was filled yesterday