Market News
- Wall Street was weighed down by news that the U.S.-China trade deal could be delayed until December, but worries were offset by gains in healthcare shares. The Nasdaq declined 24 points and broke a three-day string of record closing highs while S&P 500 had a slight gain of 2 points. Dow Jones ended the day flat and barely snapped its two-day run of record highs.
- An official of Trump administration told Reuters there is possibility of a delay for President Trump and Chinese President Xi to sign a long-awaited interim trade deal until December, as they were still discussing over terms and a venue.
- The official also highlighted the “phase one” agreement might not be reached, but a deal was more likely than not. Beijing was believed to see a quick deal as its best chance for favourable terms, given pressure Trump is facing from a congressional impeachment inquiry as he seeks re-election in 2020.
Market Views
- Stocks in Asia Pacific paused near multi-month peaks on Thursday morning as reports of delays in sealing a preliminary Sino-U.S. trade deal left investors frustrated at the lack of concrete progress. Hang Seng index slipped 106 points and Nikkei 225 index fell 8 points.
- “It is not the timing (small delay) that is worrying,” Vishnu Varathan, head of economic and strategy at Mizuho Bank said. “Instead, (it is) more negotiation tensions requiring more time that an inadvertent delay may reveal and the ensuring final/finer details of an interim deal that really matter.”
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,434
Target price:
Protective stop:
Outlook
The index broke above the triangle pattern to close above its all-time high of 27,403 three nights ago and made a new historical high at 27,559. However, the range for the past two days is narrowing, which could be sign of stalling uptrend. We could see a possible decline to test the 20EMA if price could not hold above 27,403. The index will need to penetrate above 27,559 for further rally towards the Fibonacci 127% projection target at 28,030. Stochastic is still strong at the moment and MACD is bullish.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,645
Target price:
Protective stop:
Outlook
Price gapped up and broke above the rising channel three days ago with a bullish candlestick. It has moved above the gap resistance of 27,600. This index has turned bullish and we could see a further rally towards 28,120 should it stay above the gap support zone at 27,443. The 20EMA is rising at the moment. Stochastic is still strong at the moment and MACD is also bullish.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8183 :
Target price :
Protective stop:
Outlook
The index made a new all-time high of 8243 on Tuesday and has remained in a rising channel and above the breakout level for the past seven days. However, the range for the past two days is narrowing. We could see a possible price correction to test the lower boundary of the channel. Price will need to break above the Flag for further rally towards 8256 or 8295. The index will only turn bearish if it breaks below the rising channel. Stochastic is in its overbought extreme. MACD is bullish and both its lines are rising.
Trading Idea
Look to buy 8030 for 8256 with a stop below 7920.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3071
Target price:
Protective stop :
Outlook
Price made a new all-time high of 3087 after breaking above an Ascending Triangle pattern. It has managed to stay above the breakout level and is trading above the gap support at 3065. The overhead resistance lies at 3095. There is a potential MACD divergence warning. A move below the gap support will likely to bring price lower to test the breakout level which coincide with the 20EMA at 3028. Stochastic is still strong at the moment. MACD is also bullish but a bearish crossover is likely in the coming session.
Trading Idea
Wait for better trading idea.
