Market News
- U.S. stocks fell Friday on global growth worries, including the worries about fallout from the U.S.-China trade war, but the S&P 500 still closed the week with gains after a strong kickoff to corporate earnings season. Dow Jones slipped 255 points, S&P 500 closed 11 points lower and Nasdaq Composite declined 67 points.
- A 15-month long trade negotiation the two economic powerhouses have shown few signs of a durable resolution being reached despite several rounds of talks. After reaching a partial trade deal earlier this month, Beijing and Washington are working to pen a written agreement.
- U.K. Prime Minister Boris Johnson was thwarted by a cross-party group of politicians in Parliament who voted to postpone the “meaningful vote” on his new Brexit deal, forcing Johnson to ask Brussels for an extension to the current October 31 departure deadline, but EU leaders don’t necessarily have to accept it.
Market Views
- Asian stocks were steady in a cautious start to the week on Monday morning trade as Brexit developments over the weekend created further uncertainty over UK’s impending departure from the European Union. Hang Seng index was up 83 points while Nikkei 225 index gained 62 points.
- British health minister Matt Hancock said on Sunday that there was no good reason to delay Britain’s exit from EU and the country would leave the bloc as scheduled on Oct. 31. He also said his department was ready for the possibility of a no-deal Brexit, and had plans in place for the provision of more than 12,000 medicines in the event Britain leaves the EU without an agreement.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,853
Target price:
Protective stop:
Outlook
Last Friday, the index has undergone a correction after being resisted at 27,125 resistance zone. It is now sitting at crucial rising 20EMA support. Price will need to move above 27,125 for a test of 27,310 and its all-time high at 27,403. A close below 20EMA at 26,750 would see the index testing the rising trendline. The index will turn bearish only if price close below the trendline. Stochastic is moving up at the moment. There was a bullish MACD crossover but the MACD is still bearish.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,833
Target price:
Protective stop:
Outlook
The index has rebounded from the base low at 25,230 and has moved above the rising 20EMA. A bearish engulfing candlestick pattern was formed last Friday. However, we would need a close below yesterday’s low of 26,643 today to confirm the reversal pattern. A reversal confirmation would target the low at 25,900 or the base low at 25,230 again. Price will need to move above 27,055 for a test of its previous high at 27,440. Stochastic could be crossing down soon and MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend : Short Term Bearish
Recommendation : Short at 7930
Last : 7895
Target price : 7800
Protective stop: 8041
Outlook
A Doji candlestick was followed-through last Thursday after a Hanging Man candlestick which could hint of potential top. A bearish candlestick that formed last Friday has confirmed the reversal pattern. We could see an accelerating of the price decline to test 7780-7815 support zones if price close below the 20EMA at 7816. The index will only turn bearish if it breaks below the rising trendline. Stochastic is at overbought extreme and could turn down soon and MACD is still bearish.
Trading Idea
Sell 7930 with stop at 8041 and profit target at 7800 was filled last Friday.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2996
Target price:
Protective stop :
Outlook
The index has been moving higher after rebounding from the rising trendline. It has moved above the rising 20EMA as well. However, the ranges for the past three days are narrowing, which could be a hint of stalling uptrend. We could see a possible correction back to test 2943 resistance-turned-support level if price close below 2976. Price will need to move above 3008 for a test of its previous high at 3022 or its all-time high at 3028. Stochastic is at the overbought region and could turn down soon. MACD is still bearish at the moment.
Trading Idea
Wait for better trading idea.
