- Last night, Wall Street dipped lower as investor focus on the dispute between U.S. and Iran, while energy shares fell as oil prices gave back some recent gains. Dow Jones fell 119 points while S&P 500 and Nasdaq Composite were lower by 9 and 2 points. Nasdaq’s decline was limited due to the gains in chipmakers.
- Major U.S. companies begin reporting fourth-quarter results next week, with S&P 500 earnings forecast as of Tuesday to have declined 0.6% in the quarter from a year ago, according to IBES data from Refinitiv.
- Secretary of Defence Mark Esper said Washington wants to see the situation in Middle East de-escalate and they are not looking to start a war with Iran, but they are prepared to finish one.
- Asian shares slump on Wednesday morning trade session after Iran fired rockets at an Iraqi airbase that hosts U.S. military forces, stoking fears of further sharp escalations in a developing conflict. Nikkei 225 index tumbled 461 points and Hang Seng index plunged 267 points.
- Iran telecommunication minister tweeted that “get the hell out of our region” in Iran’s first official reaction to the attacks, after Iran launched more than a dozen ballistic missiles against multiple bases housing U.S. troops in Iraq.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bearish
Recommendation : Short
Last : 28,492
Target price: 28,370 filled
Protective stop: 28,905
The index recorded a new all-time high at 28,908 last Thursday, which is also the Fibonacci 127% projection level. Price tested the rising channel but managed to hold above the channel. A 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.
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)
Last : 28,164
A Dark Cloud Cover candlestick pattern, which is a top reversal pattern, has sent the index lower to 27,850. The index is now supported by the 20EMA at 27,850. A break of the 20EMA is likely to send the index moving lower towards 27,500. We remain bearish on this index. MACD is still bullish but there is potential divergence warning and there is bearish MACD crossover. Stochastic is moving lower.
Sell at 28,175 for a test of 27,570. Stop should be placed at 28,500.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 8856
Target price :
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, the next resistance comes in at 9067. A break of the channel support will target for 8453. MACD is still bullish at the moment but just had a bearish crossover. Stochastic is moving lower.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Last : 3224
Protective stop :
The index has encountered a price pullback after forming a new all-time high at 3260 last Thursday. It is now sitting at the rising trendline support and if this support holds, there is chance for this index to re-test its all-time high at 3260. A break of this trendline will invalidate the uptrend and will target the downside at 3110. MACD is still bullish at the moment but there is potential divergence warning that is giving concern. Stochastic is moving lower from overbought extreme.
Wait for better trading idea.