CFD Indices – Apple’s Statement Likely To Start A Pullback

Market News

  • Markets in Wall Street were closed for a holiday last night due to the President’s Day.
  • U.S. stock futures slipped from record levels on Tuesday after the most valuable company in U.S., Apple, said it will not meet its revenue guidance for the March quarter as the Covid-19 outbreak slowed production and weakened demand in China.
  • Although the number of the coronavirus dropped to 1,886 on Monday from 2,048 the day before, the World Health Organization cautioned that “every scenario is still on the table” in terms of the epidemic’s evolution.

Market Views

  • Shares in Asia tumbled in Tuesday morning after U.S. tech giant Apple issues revenue warning on coronavirus impact. Nikkei 225 index fell 360 points and Hang Seng index slid 378 points.
  • The outbreak, which started in China but has since spread globally, is set to impact other companies too with almost 49% of the companies with subsidiaries in impacted regions are headquartered in Hong Kong. The impact on businesses in China and around the world has dragged down economic growth forecasts for the year.

Dow Jones Index
(CFD Symbol: US30)
Trend : Bullish
Recommendation : Exit Long
Last : 29,309
Target price: 29,730
Protective stop: 29,200

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 trend line support, price is likely to move higher towards 29,730. Stochastic is moving higher and MACD remains bullish.

Trading Idea
Exit Long position as tonight we are likely to see a negative reaction to Apple’s statement.

Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation : Long
Last : 27,612
Target price: 28,610
Protective stop: 27,400

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. Lift stop higher to 27,400

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9566
Target price :
Protective stop:

The index is strong and bullish as it is trading above the bullish trend channel. It has formed a new intraday record high at 9680 last night. 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

Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 23,199
Target price: Protective stop

This index was resisted by the declining trend line resistance. It fell below the falling 20EMA as well, posting a negative outlook for the index. A violation of 23,180, which is the Fibonacci 62% correction point of Jan-Feb price swing, would target the previous low at 22,650. Stochastic is turning down near the overbought region and the MACD has turned bearish with both lines are below zero line. A bearish MACD crossover has just seen as well.

Trading Idea
Wait for better trading idea.

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