Market News
- U.S. was closed for a holiday last night. World stocks traded just below record highs on Monday, pausing ahead of this week’s central bank meetings, economic data and earnings, while oil prices rose to their highest in over a week after blockades began shutting down two Libyan oilfields.
- The International Monetary Fund (IMF) said Monday that the global economic outlook “remains sluggish” as it trimmed its growth forecasts for 2019 and 2020 to 2.9% and 3.3%, respectively. The projected recovery for global growth remains uncertain as well.
- The upcoming earnings results for Netflix and Intel on Tuesday and Thursday in U.S. are going to be insightful for the tech sector, whilst UBS tomorrow, ASML on Wednesday and Ericsson Friday will be helpful on perceptions towards Europe.
Market Views
- Stocks in Hong Kong led losses regionally among major Asian markets on Tuesday morning after ratings agency Moody’s cut its rating for the city to Aa3 from Aa2 on Monday. Hang Seng index plunged 560 points and Nikkei 225 index lost 180 points.
- The morning session’s decline was due to the ratings downgrade from Moody’s, where the agency also changed its outlook for Hong Kong to stable from negative. The city has been plagued by months of protests that have periodically degenerated into violence, with seemingly no resolution in sight.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 29,208
Target price:
Protective stop:
Outlook
This index created a new intraday record high at 29,402 last Friday, but ended the day with a Shooting Star candlestick pattern. This is a hint of bearish reversal. A Doji candlestick pattern was followed-through and today we see a price decline. Price could be moving lower to test its 20EMA at 28,860. Price will have to break above this high for further rally towards 29,650. Stochastic remains in the overbought region and could turn down. MACD is bullish at the moment.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bearish
Recommendation : Short
Last : 29,049
Target price: 28,450 reached
Protective stop: 29,250
Outlook
This index could not break above its previous resistance high which is also near to the Fibonacci 162% projection level. It gap down today and fell inside the rising channel. The immediate support is at the resistance-turned-support zone at 27,880-28,000. We could see further downside if this zone cannot hold. Stochastic has turned down. MACD is bullish but there was divergence warning given earlier.
Trading Idea
Sell 29,180 for profit objective at 28,450 with stop above 29,250 was filled on 20 Jan 2020.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9118
Target price :
Protective stop:
Outlook
Last Friday, a new record high was created at 9177. Price broke above the rising channel and the 10EMA is acting as support at 9050. The next resistance comes in at 9447 and a move below the 10EMA will target the lower rising trendline. Stochastic is still strong but it remains in the overbought region. MACD is still strong and bullish at the moment.
Trading Idea
Wait for better trading Idea.
Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 7099
Target price:
Protective stop :
Outlook
The index created a new all-time high at 7154 last Friday but ended with the day with a Hanging Man candlestick pattern. Price gap down today and is moving lower, forming an Island reversal candlestick pattern, which is a hint of a toppish pattern. It could be heading lower towards the 10EMA at 7040 and a move below 10EMA would target the resistance-turned-support level at 6950. Stochastic is at the overbought region and is turning down. MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
