CFD Indices – Focus Back To Corporate Earning

Market News

  • Last night, U.S. stocks were higher as investors shrugged off lackluster quarterly reports from industrial bellwethers Boeing Co and Caterpillar Inc, though a lower-than-expected revenue outlook from Texas Instruments Inc sent chipmakers’ shares lower. Dow Jones rose modestly to close 45 points higher, while S&P 500 index was up 8 points and Nasdaq Composite index rose 15 points.
  • Focus has now turned to earnings and other announcements from individual companies as there are no new developments in trade relations. Boeing and Caterpillar’s shares were resilient as the companies’ slide in earnings was expected given the challenges they have faced throughout the year.
  • The recent truce in the U.S.-China trade war is not an economic turning point and has done nothing to reduce a significant risk that America could slip into recession in the next two years.

Market Views

  • Asian shares edged up on Thursday morning, following the overnight gains in Wall Street. Investors remained anxious about the business impact of the Sino-U.S. trade war during the corporate earning season while Brexit uncertainties kept overall sentiment in check. Hang Seng index rose 111 points while Nikkei 225 index gained 144 points.
  • The European Central Bank’s meeting that set to take place today is also closely watched by investors but the expectations for any new policy announcements are low as it is just six weeks after the central bank unveiled a massive stimulus package.

Dow Jones Index
(CFD Symbol: US30)

Trend :
Recommendation :
Last : 26,842
Target price:
Protective stop:

Outlook
Price has corrected after being resisted at 27,125 resistance zone. The 20EMA is providing support for the past three days. Price is moving within a triangle pattern. A move above the upper trendline resistance at 27,125 would target for all-time high at 27,403, whereas we could expect price to test the lower trendline at 26,510 if price is unable to hold at 20EMA. The index will turn bearish only if price close below the lower trendline. Stochastic is moving down at the moment. MACD is still bearish but the slow line is approaching the zero line.

Trading Idea

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Hang Seng Index
(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 26,717
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. However, there was no followed-through candlestick to confirm the reversal. Price is now supported by the rising 20EMA. Price has to break above 27,054 for a test of 27,440. We could see price testing 25,900 or the base low at 25,230 if this index move below the 20EMA at 26,510. Stochastic is moving down now and MACD has turned bullish.

Trading Idea

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Nasdaq 100 Index
(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7911
Target price :
Protective stop:

Outlook
A bearish candlestick that formed last Friday has confirmed the reversal pattern. Price is now testing the 20EMA at 7830. 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
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S&P 500 Index
(CFD Symbol: US500)

Trend :
Recommendation :
Last : 3006
Target price:
Protective stop :

Outlook
Price is trading near to its all-time high resistance at 3028. The 20EMA is rising at the moment and is providing support to the price. Price will need to move above its overhead resistance at 3022 for 3028. However, a move below the 20EMA would target for the resistance-turned-support level at 2943. Stochastic is at the overbought region and MACD is still bullish at the moment.

Trading Idea

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