Market News
- The US market closed higher on Friday boosted by better-than-expected Markit PMI data and better Michigan consumer sentiment. The Dow Jones index closed 109 points higher. The S&P 500 was up 6 points while the Nasdaq Composite index gained 13 point.
- Over the weekend, pro-democracy candidates in Hong Kong romped to a landslide but symbolic majority in district council elections in the embattled city.
- On Saturday, U.S. national security adviser Robert O’Brien said an initial trade agreement with China is still possible by the end of the year, but warned Washington would not turn a blind eye to what happens in Hong Kong, adding to worries that a Chinese crackdown on anti-government protests in Hong Kong could further complicate the talks.
Market Views
- Asian shares gain on Monday as investors braced for another week of likely conflicting commentary on the Sino-U.S. trade dispute, while recent U.S. economic data could keep the US stock market strong. Nikkei 225 index was up 147 point while Hang Seng index jumped 467 points.
- Reuters reported an ambitious “phase two” trade deal was also looking less likely, according to U.S. and Beijing officials, lawmakers and trade experts. However phase 1 has yet to be concluded and there are obstacles to a resolution.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,949
Target price:
Protective stop:
Outlook
The index made a historical high at 28,161, but has been moving lower. It found support around the 10EMA. We could see a possible price correction to test the upper trendline support at 27,235, which is also the Fibonacci 38% retracement point if price is unable to hold above the 10EMA. However if price can hold above the 10EMA, we can see a test of the historical high again. MACD is bullish at the moment, but there is a bearish crossover which hints at a potential downward price movement. Stochastic is moving down from extreme value.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 27,080
Target price:
Protective stop: 26,800 triggered
Outlook
Price managed to close a gap this morning and is about to break a previous resistance high at 27,158. If price can move above this resistance, it is likely to test another gap resistance 27,613. Stochastic is moving up from the oversold extreme. MACD is still bearish but could be about to turn bullish as both its lines are close to the zero line.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation : short
Last : 8303
Target price : 8035
Protective stop: 8375
Outlook
The index made a new all-time high of 8374 but ended the day with a Doji candlestick. Price found supported around the 10EMA. Price is likely to head lower to test the breakout level at 8035 if it moved below the 10EMA. However if the index is able to hold above the 10EMA, it can test the historical high. Stochastic is in its overbought extreme and is moving down. MACD is bullish but there is divergence warning given along the way, and a bearish crossover was seen.
Trading Idea
Sell 8290 for 8035 with stop above 8375 was filled on 21 Nov
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3120
Target price:
Protective stop :
Outlook
Price created a new-time high at 3132 but has been moving lower since then. It is now moving higher after finding support at the 10EMA. We could see price moving lower to test the gap support at 3065 if 10EMA cannot halt the price decline. However, if the 10EMA holds, the index is likely to test the all-time high again. Stochastic is in the overbought region and is moving down. MACD has already shown divergence warning and is moving down.
Trading Idea
Wait for better trading idea.
