CFD Indices – Gain in Tech Stocks Offset Coronavirus Worries

Market News

  • S&P 500 and Nasdaq Composite closed marginally higher on Wednesday, led by the gains in technology sector as a healthy forecast from IBM helped mitigate worries over the developing coronavirus outbreak. The Dow was relatively flat, ended the day with 9 points lower.
  • Global precautions have been put in place to curb a viral outbreak from China, which has now claimed 17 lives with more than 540 cases confirmed. The World Health Organization (WHO) has convened to determine whether the situation was a global health emergency.
  • Democrats accused Trump at the start of his impeachment trial on Wednesday of a corrupt scheme to pressure Ukraine to help him get re-elected, but Trump told reporters in Switzerland the Democrats did not have enough evidence to find him guilty and remove him from office.

Market Views

  • Shares in Asia Pacific were lower on Thursday morning, giving up yesterday’s gains as investors remained anxious about the spread of a new flu-like virus in China just as millions prepared to travel for the Lunar New Year. Hang Seng index slid 223 points and Nikkei 225 index fell 144 points.

U.S. crude dipped 1.06% to $56.14 a barrel. The American Petroleum Institute said U.S. crude inventories rose 1.6 million barrels last week, compared with analysts’ expectations for 1 million-barrel draw

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 29,164
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. A Doji candlestick pattern was followed-through and price has been moving lower for the past two days. The 20EMA support lies at 28,910. A move below the 20EMA will target for the lower channel support. Price will have to break above 29,402 for further rally towards 29,650. Stochastic remains in the overbought region and is turning down. MACD is bullish at the moment but a bearish crossover is likely.

Trading Idea
Wait for better trading idea


Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,082
Target price:
Protective stop:

Outlook
This index has been falling after being resisted at its previous resistance high which is also near to the Fibonacci 162% projection level. It is staying at the resistance-turned-support zone, which is also the Fibonacci 38% correction point of the rally started since Dec 19. This is a key support level as a violation of this support would accelerate the downside towards 27,200. Stochastic has turned down but MACD is still bullish.

Trading Idea
Sell 28,610 for profit objective at 27,950. Stop should be placed above 28,850.


Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9218
Target price :
Protective stop:

Outlook
Price has formed a new intraday record high at 9242 last night, but was closed lower, ended the day with a Shooting Star candlestick pattern. It has to break above this new high for further upside towards 9447. A move below the 10EMA at 9100 could target for the lower channel support. 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.


Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 23,870
Target price:
Protective stop :

Outlook
This index has encountered a price pullback after reaching near its previous resistance high. It is now sitting at the 20EMA support at 23,810. A break below this 20EMA could likely to bring price lower towards the rising trendline support. Price has to break above 24,182 for further rally. Stochastic is at the overbought region and MACD is still bullish but could be forming a bearish crossover.

Trading Idea
Wait for better trading idea.


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