CFD Indices – Tech Stocks Led Nasdaq Higher

Market News

  • Last night, S&P 500 and Nasdaq Composite both closed at record highs, boosted mainly by index leaders in technology sector such as Amazon, Microsoft Corp and Alphabet after Chinese workers and factories slowly returned to business following a Lunar New Year holiday. Dow Jones rose 174 points as well.
  • Worries over the Wuhan virus kept market participants on edge, as the death toll surpassed 1000 and the World Health Organization warned that new cases outside of China could be “the spark that becomes a bigger fire.”
  • A top American central banker said on Monday that while China’s economy will likely slow for at least a couple of quarters due to the coronavirus epidemic, the impact on the U.S. economy have been limited.

Market Views

  • Asian markets looked set for another cautious session on Tuesday morning as investors tried to judge how quickly China’s factories could return to work as the coronavirus continues to spread and deaths mount. Hang Seng index climbed 397 points while Nikkei 225 index slid 142 points.
  • Chinese cities have become virtual ghost towns after Communist Party rulers ordered lockdowns, cancelled flights and closed factories and schools.

Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation : Long
Last : 29,362
Target price: 29,730
Protective stop: 28,850

Outlook
This index has rebounded and has created a new record high at 29,530 after being supported at the resistance-turned-support level at 28,160. Price managed to rebound at the previous price resistance turned support of 28,955, which is also the 20EMA support yesterday. As long as this level holds, our bullish view remains intact. Stochastic is turning up and MACD remains bullish.

Trading Idea
Hold Long for 29,730 but bring Stop higher to 28,850.


Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,617
Target price:
Protective stop:

Outlook
This index managed to recover from the decline after being supported by its previous low at 25,950. Price broke above the Flag pattern and the 20EMA today, and it is now testing the gap resistance zone. We would like to see price staying firm above this zone for the upside target of 28,610. A failure move to close above the resistance zone will likely bring price lower. Stochastic is turning up from the oversold region. MACD has turned bearish but just had a bullish crossover that hint of upside movement

Trading Idea
Wait for better trading Idea


Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9561
Target price :
Protective stop:

Outlook
The index hit its new record high at 9522 last night. It is still strong and bullish as the index is breaking out of the bullish trend channel. The 20EMA remains bullish and is still rising. The 20EMA will also be acting as support for the moment. We peg the next resistance at 9678, which is the Fibonacci 300% projection level. Stochastic is rising to the overbought region. MACD is still bullish at the moment with both its line well above the zero line.

Trading Idea
Wait for better trading Idea


S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3363
Target price:
Protective stop :

Outlook
The index has risen back inside the trend channel and also moved above the 20EMA. Last Thursday, it created a new record high at 3358. We have seen a new intraday record high of 3365 as of now, after the index rebounded from the price support which coincided with the trend channel and the 20EMA. Stochastic is turning up and MACD is still bullish. A bullish MACD crossover was seen, which is likely to bring this index higher towards the next resistance at 3370 or even higher at 3410.

Trading Idea
Wait for better trading idea.

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