Market News
- U.S. market is closed for a holiday tonight due to the President’s Day but our CFD Indices will continue to trade as normal for tonight.
- S&P 500 and the Nasdaq edged higher on Friday, supported by Nvidia shares after its price jumped 8% on its upbeat outlook, but the gains were limited due to the concerns about an economic hit from the coronavirus outbreak. The Dow Jones index declined by 25 points.
- A Commerce Department retail sales report missed expectation and showed consumer spending slowed further in January, while separate data indicated industrial production fell more than expected last month.
Market Views
- Asian shares were mixed on Monday morning. Hang Seng Index moved back toward a three-week top as Chinese efforts to cushion the blow from a coronavirus outbreak cheered investors. Hang Seng index rose 150 points but Nikkei 225 index fell 207 points amid growing recession risks after Japan’s GDP shrank 1.6%.
- China’s Finance Minister on Sunday that Beijing would roll out targeted and phased tax and fee cut but fears about the jolt to the world economy from the coronavirus still lingered though as the number of reported new cases in China rose to 2,048 as on Sunday from 2,009 the previous day.
Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation : Long
Last : 29,458
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. However for the past 3 trading days, price has been stuck within the range of 29,243 to 29,580. As long as price stay above the support at 29,243, which is also the lower trendline support, price is likely to move higher towards 29,730. Stochastic is moving higher and MACD remains bullish.
Trading Idea
Hold Long for 29,730 but bring Stop higher to 29,200
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,997
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 last Tuesday. As long as the gap at 27,470 holds, the upside target will be pegged at 28,610. A closing of the gap is likely to bring price lower. Stochastic is turning up from the oversold region. MACD is bearish but just had a bullish crossover that hint of upside movement.
Trading Idea
Buy dip to 27,650 for 28,610 with stop below 27,300 was filled on 18 Feb 2020.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9664
Target price :
Protective stop:
Outlook
The index is strong and bullish as it is trading above the bullish trend channel. It has formed a new intraday record high this morning at 9669. The 20EMA remains bullish and is still rising. We peg the next resistance at 9965. 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 : 3387
Target price:
Protective stop :
Outlook
The index again created a new intraday record high at 3387 today 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 to 3410. 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.
Trading Idea
Wait for better trading idea.
