CFD Indices – US Indices Reached New Historical High On Trade Resolution

Market News

  • Dow Jones surged 220 points to hit its record highs on Thursday following news that U.S. had reached a “deal in principle” with Beijing to resolve a trade war that has rattled markets for nearly two years. S&P 500 and Nasdaq Composite posted record high closes as well.
  • Trump tweeted that Washington was close to a deal ahead of Sunday’s deadline, when a new round of tariffs on Chinese goods has been set to go into effect. Later in the day, reports emerged that the two countries had reached a deal in principle.
  • Reuters reported that U.S. had offered to cut existing tariffs on Chinese goods by as much as 50%, and to suspend new tariffs due to kick in Sunday with an aim to securing a deal in return for China’s agreement to purchase $50 billion of US agricultural goods next year.

Market Views

  • Asian share markets jumped on Friday morning as a last-gasp Sino-U.S. trade deal and a likely major election win by Britain’s Conservative Party looked to have cleared a couple of dark clouds from the global horizon. Nikkei 225 index jumped 565 points and Hang Seng index climbed 475 points.
  • Exit polls suggested the ruling right-wing Conservatives could gain a commanding 368 seats in Britain’s Parliament, settling another long-standing uncertainty. Johnson now looked likely to have the power to push through Brexit, though trade talks with the European Union could still drag on for months.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,234
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, to break above its historical all-time high at 28,202 last night. As long as price move along with the rising 20EMA, we could see this index moving higher. The next resistance lies at 28,866, which is the Fibonacci 127% projection target. Stochastic is moving higher. MACD is bullish at the moment and a bullish crossover was just seen.

Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,507
Target price:
Protective stop:

Outlook
Price gapped up yesterday and managed to surge and tested its overhead gap resistance at 27,475-27,628 with an extraordinary long bullish candlestick. This index will need to penetrate above this gap resistance zone for a test of its previous high at 27,998. As long as price stay above the gap support zone, there is likelihood of this index testing for its high. MACD is bearish but there is a bullish divergence warning and a bullish crossover was seen. Stochastic is also moving higher.

Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8503
Target price :
Protective stop:

Outlook
The index penetrated above its recent high and posted a new all-time high of 8493 last night after finding support at the 20EMA. It is going to test the channel resistance. The next resistance comes in at 8689. A move inside the rising channel will increase the likelihood of the index testing the next resistance. Stochastic is moving higher. MACD is bullish and there is a bullish crossover.

Trading Idea
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S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3180
Target price:
Protective stop :

Outlook
This index created a new all-time high at 3176 last night after finding support at the 20EMA. The 20EMA is rising at the moment, suggesting more potential upward movement ahead. The next resistance lies at 3234. Stochastic is moving higher and is at the overbought extreme. MACD is bullish and a bullish crossover was seen.

Trading Idea
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