Market News
- U.S. stocks ended higher on Monday, rebounding from Friday’s losses as investors brushed aside worries about increased tensions in the Middle East. Dow Jones rose 68 points, S&P 500 was up 11 points and Nasdaq Composite gained 50 points.
- Top internet companies were the main contributor for the Wall Street’s gains last night. Alphabet Inc rose 2.7% after Pivotal Research upgraded the stock to “buy.” However, chipmakers were among the day’s biggest decliners.
- The conflict between U.S. and Iran continued with no new aggression, yet U.S. Defence Secretary Mark Esper told Pentagon reporters that no decision had been made and the military said the letter was only a poorly worded draft.
Market Views
- Shares in Asia Pacific rebounded on Tuesday morning as a day passed without a new escalation in the Middle East and Wall Street erased early losses to end in the black as tech stocks climbed. Hang Seng index rose 163 points while Nikkei 225 index surged 348 points.
- Japan’s services sector saw its deepest contraction in more than three years in December as business activity took a hit from weak demand at home and abroad. The Japanese economy has most likely entered a cyclical lull, although continued job creation and upbeat expectations provide a glimmer of hope.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bearish
Recommendation : Short
Last : 28,713
Target price: 28,370
Protective stop: 28,905
Outlook
The index recorded a new all-time high at 28,908 last Thursday, which is also the Fibonacci 127% projection level. Price is still moving within the rising channel but a break of the 20EMA, coupled with the break of the channel, can send the index lower to 28,000. MACD is bullish at the moment but there is potential divergence warning and MACD just had a bearish crossover. Stochastic is moving lower for overbought extreme.
Trading Idea
Sell 28,700 with stop above 28,905 for a decline to 28,370 was filled on 7 Jan 2020
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,426
Target price:
Protective stop:
Outlook
This index broke above the rising channel resistance last Thursday. However, this breakout was unable to sustain whereby price formed a Dark Cloud Cover candlestick pattern, which is a top reversal pattern. Price closed below 28,194 yesterday and a move below the gap 28,080 will target for 27,500. MACD is still bullish but there is potential divergence warning and there is bearish MACD crossover. Stochastic is moving lower.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8856
Target price :
Protective stop:
Outlook
The index recorded a new all-time high of 8882 last Thursday, which is near to the rising channel resistance. Price is moving along with the rising 20EMA and is within the rising channel. As long as this index moves within the channel, our bullish view remains intact. The next resistance comes in at 9067. MACD is still bullish at the moment and Stochastic is going to cross up again.
Trading Idea
Wait for better trading idea
Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 23,527
Target price:
Protective stop :
Outlook
This index encountered a price retracement after reaching a high at 24,182. The pullback is supported by a rising channel and yesterday, a Doji candlestick was formed. Price is forming a followed-through candlestick, which could be a sign of a rebound. A close and move above 20EMA at 23,603 will increase the likelihood for the index testing its high again. Stochastic could be turning up near the oversold region. MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
