- U.S. stocks rebounded on Wednesday as investor optimism got a boost from President Trump’s remarks that talks with Beijing on an interim trade deal were going “very well.” Dow Jones rose 146 points while S&P 500 index was up 19 points and Nasdaq Composite index gained 46 points.
- Trump has repeatedly sent mixed messages about the status of negotiations, sparking fits of optimism and despair in financial markets. He said that discussions are going very well just a day after warning of a delay till Nov 2020.
- Trump’s comments supported a Bloomberg report that the world’s two largest economies were closer to agreeing how much tariffs would be rolled back in a “phase one” trade deal.
- Asia Pacific’s stocks edged up on Thursday morning on signs that the two economic powerhouses were on track for a preliminary trade deal, though optimism was tempered by the almost daily shifts in prospects for defusing the damaging tariff war now in its second year. Hang Seng index climbed 133 points and Nikkei 225 index rose 159 points.
- The non-farm payrolls report that is scheduled to be released on this Friday by the U.S. Labour Department will be the next focus for investors to determine how well the U.S. economy is holding up amid a global slowdown partial caused by 16-month trade conflict.
Dow Jones Index
(CFD Symbol: US30)
Last : 27,628
The index made a new intraday historical high at 28,202 on Monday during the intraday session, but closed at its day’s low, resulting in a Reversal Day price pattern. Price broke below the 20EMA, and the 20EMA is falling at the moment, hinting at a potential decline in the short term. The next support comes in at 27,262 which is the Fibonacci 38% correction point. A break of this level would target for 26,791 and 26,681. MACD is bullish at the moment, but there is a potential bearish divergence forming. Stochastic is moving lower
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Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short
Last : 26,154
Target price: 25,600
Protective stop: 26,360
Price moved below the 20EMA after a gap down was seen last Friday and has been declining since. The index broke below its previous low support range of 26,216-26,328, which has now turned into a resistance zone. We are expecting this index to test the base low at 25,536 if the index is unable to move above 26,328. Stochastic is moving lower and MACD has turned bearish with both lines below the zero line.
Sell 26,200 for 25,600 with a stop above 26,360 was filled on 4 Dec
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 8284
Target price :
The index touched its all-time high of 8453 on Monday, but closed at its day’s low, resulting in the formation of a Reversal Day pattern. Price broke below the rising channel and moved below the declining 20EMA, which is pointing at a potential decline in the near term. This index could be moving lower towards the breakout level of 8034. Stochastic is moving lower from the overbought extreme. MACD is bullish but there is divergence warning given along the way, and a bearish crossover was seen.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Last : 3107
Protective stop :
The index made a new all-time high of 3157 on Monday, before moving lower to close at its day’s low. Price moved below the 20EMA and is now sitting at the small gap support of 3035-3065. This index could be moving lower to the breakout level of 3028 if it cannot sustain at this gap support zone. Stochastic is moving down. MACD is bullish but the fast line is below the zero line. There is also divergence warning given along the way, and a bearish crossover was seen.
Wait for better trading idea.