Market News
- Technology shares led the broad-based rally, which pushed all three major U.S. averages to fresh highs on Wednesday. News that the coronavirus outbreak could be running out of steam also kept buyers in the ring.
- China reported the new cases of the Covid-19 at its lowest number in two weeks, the day after Beijing’s senior Chinese medical adviser said the epidemic could be over by April.
- The outbreak has spooked investors amid quarantines, supply-chain disruptions and factory shutdowns, and the World Health Organization warned that the apparent slowdown in the epidemic’s spread should be viewed with “extreme caution.”
Market Views
- Asian markets wobbled on Thursday morning as the number of new coronavirus cases at the outbreak’s epicenter jumped sharply. Hang Seng index fell 45 points while Nikkei 225 index was up 17 points.
- China’s Hubei province on Thursday reported a spike in the number of new coronavirus cases with 242 new deaths and confirmed 14,840 new cases on Feb. 12, a dramatic rise from the 2,015 new cases a day earlier. More than 1,300 people have died.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation : Long
Last : 29,474
Target price: 29,730
Protective stop: 29,200
Outlook
This index has rebounded and has created a new record high at 29,584 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 three nights ago. As long as this level holds, our bullish view remains intact for 29,730. Stochastic is turning up and MACD remains bullish. Both momentum indicators could be warning of divergence if momentum failed to pick up.
Trading Idea
Hold Long for 29,730 but bring Stop higher to 29,200
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,847
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, 20EMA and the gap resistance zone two days ago. As long as the gap at 27,470 holds, the upside target will be pegged at 28,610. A move below the gap is likely to 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 : 9585
Target price :
Protective stop:
Outlook
The index hit its new record high at 9618 last night. It is still strong and bullish as it broke above the bullish trend channel. The 20EMA remains bullish and is still rising. We peg the next resistance at 9678, which is the Fibonacci 300% projection level. A move inside the channel will target for the 20EMA which is acting as support for the moment. 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 : 3372
Target price:
Protective stop :
Outlook
Last night the index again created a new record high at 3382 after the index rebounded from the price support which coincided with the trend channel and the 20EMA at 3300. As long as this index stays within the trend channel, we remain bullish and looking for new highs. Stochastic is at the overbought region but MACD is still bullish. A bullish MACD crossover was seen, which is likely to bring this index higher towards the next resistance at 3410.
Trading Idea
Wait for better trading idea.
