Market News
- U.S. stocks ended lower on Tuesday, giving up early gains after British lawmakers rejected the government’s proposed timetable for passing legislation to ratify its deal to exit the European Union.
- Though Brexit complications have had limited impact on American markets, investors worried the uncertainties about global financial and economic conditions such as the microchip industry is being squeezed by a downturn in demand and a prolonged U.S.-China trade dispute sent some Asian chip-related shares lower.
- S&P 500 slid 10 points and fell below 3000, but remained within 1% of its record closing high in July. Dow Jones fell 39 points while Nasdaq Composite declined 58 points, contributed by the fall in Facebook due to an expanding probe of the allegations that put consumer data at risk and pushed up advertising rates.
Market Views
- Asia Pacific markets dipped in early Wednesday trade as developments on Brexit overnight meant the deadline for the U.K. to leave the EU would likely be delayed again. Hang Seng index slipped 261 points and Nikkei 225 index declined 8 points.
- The defeat in parliament made it unlikely that Britain would finalize its exit by Prime Minister Boris Johnson’s Oct. 31 target. Johnson said it was up to the EU to decide whether it wanted to delay Brexit and for how long.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,737
Target price:
Protective stop:
Outlook
Last Friday, the index had undergone a correction after being resisted at 27,125 resistance zone. It is now sitting at crucial 20EMA support. The 20EMA is flat now and could turn down. A move below 20EMA at 26,750 could see the index test the rising trendline near 26,510. The index will turn bearish only if price close below the trendline. Stochastic is moving down at the moment. MACD is still bearish and the fast line is turning down.
Trading Idea
Wait for a better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,523
Target price:
Protective stop:
Outlook
The index was capped at 27,054 and has formed a bearish engulfing candlestick pattern that warned of potential reversal last Friday. Price is now moving down with a bearish long candle after consolidating within small ranges for the past two days. It is now testing the 20EMA. We could see price testing 25,900 or the base low at 25,230 if this index move below the 20EMA at 26,480. Stochastic is moving down now and MACD is still bearish at the moment
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7823
Target price :
Protective stop:
Outlook
A bearish candlestick that formed last Friday has confirmed the reversal pattern. Price is now testing the 20EMA at 7822. We can expect a price decline if price cannot hold at 20EMA. We don’t think price can hold at 7780-7815 support zones and if so, we could see an acceleration move to test the trendline around 7600. Stochastic is moving down now. MACD is still bullish but a bearish crossover is likely in the coming session.
Trading Idea
Wait for better trade idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 22,568
Target price:
Protective stop :
Outlook
A potential reversal spinning top candlestick was seen yesterday. The ranges for the past five days are relatively small which could hint of stalling uptrend. We could see price testing the 20EMA at 22,140 if price move below 22,415. A further downside would target at Fibonacci 62% correction point at 21,730 if 20EMA could not hold. There is also MACD divergence warning which is giving concern of potential top. Stochastic could cross down soon and MACD is still bullish at the moment.
Trading Idea
Sell 22,600 for 22,275 with stop above 22,820
