Market News
- Wall Street recovered some losses on Monday, boosted by heavyweight technology shares and on surprise strength in U.S. manufacturing activity, which sent the Nasdaq Composite to close 122 points higher. Dow Jones rose 143 points and S&P 500 gained 23 points.
- U.S. factory activity rebounded in January after contracting for five straight months amid a surge in new orders, according to the Institute for Supply Management (ISM).
- Investors were eyeing a busy American political week. The U.S. Senate was due to vote on Wednesday on whether to remove Trump from office following the impeachment process, with the Republican-controlled body widely expected to acquit him.
Market Views
- A fragile calm gripped Asian shares on Tuesday morning session as investors waited anxiously to see if Beijing could stem the rout in Chinese assets. Hang Seng index advanced 281 points while Nikkei 225 index has a slight gain of 7 points.
- China’s central bank has flooded the economy with cash while trimming some key lending rates, but analysts suspect more will have to be done to offset the economic fallout from the virus.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,499
Target price:
Protective stop:
Outlook
Price broke below the trend channel and a price recovery was halted by the price resistance at 28,955. This index declined and is now sitting on its resistance turned support at 28,160. If price is unable to hold above this support, this index is likely to test the next support level at 27,320. If price can hold the support, this index can test back to 28,770. Stochastic is still moving lower. MACD is bullish at the moment. Watch the support at 28,160
Trading Idea
Wait for better trading Idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,562
Target price:
Protective stop:
Outlook
This index has broken below the trend channel. It recovered after being supported by the previous low support at 25,950. If this index can hold above this support, a move above 26,845 would hint at the 20EMA resistance at 27,570. If support at 25,950 gives way, the next support is at 25,530. Stochastic has turned down but we could see a bullish crossover soon. MACD has turned bearish.
Trading Idea
Wait for better trading Idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9319
Target price :
Protective stop:
Outlook
The index is still trading within the trend channel and has also been able to hold above the previous low at 8920. It is now hovering around the 20EMA. As long as price stays inside the trend channel, this index will remain bullish and could test its all-time high again. Stochastic is still moving lower but we could see a bullish crossover soon. MACD is still bullish at the moment with both its line above the zero line
Trading Idea
Look to buy dip at 8965 for a rally to 9230 with stop below the trend channel at 8870.
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3257
Target price:
Protective stop :
Outlook
The index broke below the trend channel and the falling 20EMA. If price could not rise back inside the trend channel, we could see price moving lower towards the support zone at 3181. Price resistance at 3296 is also likely to cap any price rally at the moment. Stochastic is turning down but we could see a bullish crossover soon. MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea.
