Market News
- Apple, Alphabet and other tech favourites which have powered the longest bull run in U.S. equities, sent Wall Street to another record high on Monday, fueled by optimism about the signing of a preliminary U.S.-China trade deal, as well upcoming fourth-quarter earnings reports.
- U.S. Treasury Department on Monday said Beijing was no longer a currency manipulator. This adds to the positive mood that has been already in place ahead of the signing of the trade deal and sent the Yuan higher to near its strongest since late July 2019.
- Besides the trade deal, investors are also looking to U.S. inflation data due later on Tuesday and the beginning of the fourth-quarter U.S. company results season.
Market Views
- Asian share rose on Tuesday morning as signs of goodwill between China and U.S. supported optimism for global growth, with the world’s two biggest economies preparing to formalize a trade-war truce. Nikkei 225 index surged 176 points and Hang Seng index was up 38 points.
- China is set to release its exports and imports data for December on Tuesday. Those numbers will be closely watched ahead of the imminent signing of the long-awaited phase one trade deal with the U.S. on Wednesday in Washington.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,919
Target price:
Protective stop:
Outlook
The index rebounded from the rising trendline support which is also the resistance turned support level after experiencing a huge selloff last Wednesday. It formed a new all-time high at 29,056 but closed lower. As long as price remains in the rising channel, our bullish view unchanged. The next resistance comes in at 29,650. However, the upside could be limited as the MACD histogram is losing strength and a possible bearish divergence could be forming. Stochastic is moving higher and MACD is bullish at the moment.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 29,016
Target price:
Protective stop:
Outlook
Price gap up today after rebounding from the rising 20EMA four days ago. It is now near to its previous high resistance level and also the Fibonacci 161% projection target at 29,300. This index has to penetrate above this level for further upside at 30,090. However, the MACD histogram is weakening and there is potential divergence warning which is hinting of a possible top forming. MACD is still bullish at the moment and Stochastic is moving higher.
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9077
Target price :
Protective stop:
Outlook
Last night, this index recorded a new all-time high at 9079 after being supported by the rising 20EMA four nights ago. Price is still moving along with the rising 20EMA and has broken above the rising channel. The next resistance comes in at 9447. MACD is still bullish at the moment and Stochastic is still strong and is moving higher.
Trading Idea
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S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3289
Target price:
Protective stop :
Outlook
The index created a new all-time high of 3290 last night after being supported by the rising trendline. The 20EMA is still rising and is strong and as long as price moves along with the rising trendline, the uptrend remains intact. The next resistance lies at 3340. MACD is still bullish at the moment and Stochastic is still strong and is moving higher.
Trading Idea
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