Market News
- Wall Street ended solidly higher on Friday as a strong jobs report and optimism about U.S.-China trade negotiations ahead of an upcoming deadline helped stoke investor’s risk appetite. The Dow climbed 337 points, S&P 500 was up 28 points and Nasdaq Composite rose 85 points.
- U.S. Non-farm payrolls increased by 266,000 jobs last month, the biggest gain in 10 months, while the unemployment rate edged down to 3.5%, its lowest level in nearly half a century.
- Mexico would accept U.S. demand on steel in the United States-Mexico-Canada Agreement if the rule took effect at least five years after the trade pact’s ratification, Mexican Foreign Minister Marcelo Ebrard said on Sunday.
Market Views
- Asian stocks traded higher on Monday morning, catching some of Wall Street’s momentum after surprisingly strong U.S. jobs data although regional gains were capped by concerns about China’s economy due to the prolonged Sino-U.S. trade war. Hang Seng index rose 92 points and Nikkei 225 index gained 107 points.
- China’s exports declined in November for the fourth consecutive month, underscoring persistent pressures on manufacturers from the Sino-U.S. war. But growth in imports may be a sign that Beijing’s stimulus efforts are helping to stoke.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,976
Target price:
Protective stop:
Outlook
The index has rebounded from the resistance-turned-support level, which is also near to the Fibonacci 38% correction point. Price will need to break above its new intraday historical high at 28,202 to be bullish again and for a test of 28,866. A failure to penetrate above 28,202 will likely bring the index back to test the support range at 27,260-27,320 again. Stochastic could be moving higher. MACD is bullish at the moment, and the fast line is turning up.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,559
Target price:
Protective stop:
Outlook
Price is currently testing its overhead 20EMA resistance at 26,638. This index will need to move above the declining 20EMA for further upside towards 27,315. A move above the gap resistance of 26,786 would increase the likelihood of this index testing 27,315. A failure attempt to penetrate above the 20EMA would target the base low at 25,536. Stochastic is turning up. MACD has turned bearish with both lines below the zero line, but there is potential divergence warning.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8382
Target price :
Protective stop:
Outlook
The index touched its all-time high of 8453 last Monday, but closed at its day’s low, resulting in the formation of a Reversal Day pattern. Price is now moving higher to test the channel resistance. A failure to move above the channel would target the breakout level of 8034. Stochastic is moving lower from the overbought extreme but could be turning up. MACD is bullish but there is divergence warning given along the way, and a bearish crossover was seen.
Trading Idea
Wait for better trading idea
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 23,444
Target price:
Protective stop :
Outlook
This index is moving within a Triangle pattern. Price will need to break above the upper declining trendline resistance to continue moving higher towards 24,364. We could see this index testing the lower boundary trendline support if price moves below the 20EMA. A break of the lower trendline support would target for Fibonacci 62% correction point at 22,060. Stochastic is moving up. MACD is bullish at the moment but both lines are declining and are moving nearer to the zero line.
Trading Idea
Wait for better trading idea.
