Market News
- U.S. markets ended little changed on Thursday as enthusiasm over Apple shares was offset by doubts about the likelihood of a “phase one” trade deal before a new round of U.S. tariffs on Chinese imports begins in 10 days time. Dow Jones rose 28 points while both S&P 500 and Nasdaq Composite was up 4 points.
- Trump said on Thursday that U.S.-China trade talks are “moving right along,” striking an upbeat tone despite a lack of agreement over whether existing tariffs should be dropped as part of a deal. Trump said U.S. may take action on trade with countries that are not contributing enough to the North Atlantic Treaty Organization.
- U.S. trade deficit dropped to its lowest level in nearly 1-1/2 years in October, suggesting trade could contribute to economic growth in the fourth quarter, though a broad decline in imports hinted at a slowdown in domestic demand.
Market Views
- Asian stocks held firm on Friday morning as Trump’s rhetoric kept investors’ hopes up on a trade deal with Beijing, while oil sat near two-month highs after producers led by Saudi Arabia and Russia agreed on further output cuts. Hang Seng index climbed 170 points and Nikkei 225 index rose 75 points.
- Uncertainties over a deal have pushed some investors to the sidelines in recent sessions, while nervousness ahead of the release of U.S. payrolls data later in the day could also dampen trade on Friday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,705
Target price:
Protective stop:
Outlook
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.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,506
Target price:
Protective stop: 26,360 triggered
Outlook
Price moved below the 20EMA after a gap down was seen last Friday. It is now moving up to test its overhead 20EMA resistance at 26,632. This index will need to move above the declining 20EMA for further upside towards 27,315. A failure attempt to penetrate above the 20EMA would target for the base low at 25,536. Stochastic could be turning up. MACD has turned bearish with both lines below the zero line, but there is potential divergence warning.
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8322
Target price :
Protective stop:
Outlook
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 as well. It is now holding at the 20EMA and is trying to test the channel resistance. A failure move above the channel would target for 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.
Trading Idea
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S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3120
Target price:
Protective stop :
Outlook
The index made a new all-time high of 3157 on Monday, before moving lower to close at its day’s low. Price could have found support at the small gap zone of 3035-3065, and is now moving above the 20EMA. As long as price holds above this gap support, there is chance for this index to test its high again. A break of this support zone will target for the breakout level of 3028. Stochastic is moving down. MACD is bullish but the fast line is below the zero line.
Trading Idea
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