Market News
- The Dow closed above 29,000 for the first time on Wednesday and the S&P 500 also closed at a record high after Washington and Beijing signed a Phase 1 trade agreement and pledged to resolve a tariff dispute that has roiled Wall Street for over a year.
- The centrepiece of the truce is a pledge by China to purchase at least an additional $200 billion worth of U.S. farm products and other goods and services over two years, over a baseline of $186 billion in purchases in 2017.
- Trump said he would remove all U.S. tariffs on Chinese imports as soon as the two countries complete a Phase 2 trade agreement, on which negotiations will start soon.
Market Views
- Asian stocks inched higher on Thursday morning after U.S. and China signed a deal to defuse their 18-month trade war, which has weighed on global economic growth and hampered investments. Nikkei 225 index has a slight gain of 34 points and Hang Seng index rose 131 points.
- Oil prices edged back after touching a six-week trough the previous day on data showing big increases in U.S. refined products.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 29,083
Target price:
Protective stop:
Outlook
The index formed a new all-time high at 29,128 last night and closed above 29,000 for the first time. As long as price remains in the rising channel, our bullish view remains unchanged. The next resistance comes in at 29,650. However, the upside could be limited to the next resistance as the MACD histogram is losing strength and a possible bearish divergence could be forming. We could expect price to test its lower channel again. Stochastic is heading lower and MACD is bullish at the moment.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,860
Target price:
Protective stop:
Outlook
Price gapped up but closed lower two days ago after trading near to its previous high resistance level and also the Fibonacci 161% projection target at 29,300. We could see this index moving lower towards the 20EMA at 28,273 if it breaks below the upper channel support. This index has to penetrate 29,233 for further upside at 30,090. The MACD histogram is weakening and there is potential divergence warning which is hinting of a possible top forming. MACD is still bullish but Stochastic is near to overbought extreme.
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9053
Target price :
Protective stop:
Outlook
On Monday, this index recorded a new all-time high at 9079 after being supported by the rising 20EMA three nights ago. Price is still moving along with the rising 20EMA but has fallen inside the rising channel. It could test the 20EMA at 8825 if it can’t break the all-time high as Stochastic is losing its strength and is heading lower. The next resistance comes in at 9447. MACD is still bullish at the moment.
Trading Idea
Wait for better trading Idea.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3294
Target price:
Protective stop :
Outlook
The index created a new all-time high of 3298 last night after being supported by the rising trendline. The next resistance comes in at 3340. We could see price moving lower to test 20EMA at 3246 if it can’t penetrate its high. Stochastic is heading lower and there is potential divergence warning that increase the odds of potential pullback.
Trading Idea
Wait for better trading idea.
