Market News
- Last night, the world’s most valuable technology firm, Apple, issued a sales warning that would fall short of its recently announced quarterly sales target because of slower iPhone production and weaker demand in China due to the recent coronavirus outbreak.
- This led the Dow and S&P 500 to decline by 165 and 9 points respectively but Nasdaq Composite ended 1 point higher. Apple suppliers such as Qualcomm, Broadcom and Qorvo all ended the day lower by about 2%.
- China is still struggling to get its manufacturing sector back online after imposing severe travel restrictions to contain a virus that emerged in the central Chinese province of Hubei late last year.
Market Views
- Asian shares inched higher on Wednesday morning as investors tried to shake off worries about the coronavirus epidemic following a slight decline in the number of new cases. Hang Seng index rose 46 points and Nikkei 225 index gained 91 points.
- Japan’s government is expected to maintain its assessment that the economy is recovering in a monthly report due on Thursday, despite the widening fallout from the coronavirus outbreak.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 29,302
Target price:
Protective stop:
Outlook
This index made a new record high at 29,584 on the 12th of Feb 2020 and has been declining since that date. Yesterday, the 20EMA managed to halt the decline but if the index failed to be supported at the 20EMA, it is likely to decline to the resistance-turned-support level at 28,160. Stochastic is moving lower from the overbought zone and there was a bearish crossover yesterday. MACD remains bullish but there is a bearish divergence warning as well.
Trading Idea
Wait for better trading Idea
Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation : Long
Last : 27,748
Target price: 28,610
Protective stop: 27,400
Outlook
Price broke above the Flag pattern, 20EMA and the gap resistance zone last Tuesday. The breakout is not strong and price has decline back to the gap support area. As long as the gap at 27,350 holds, the upside target can be pegged at 28,610. A closing of the gap will likely to bring price lower. Stochastic is turning down from the oversold region. MACD is bearish but 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 : 9660
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 at 9680 on Monday. 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. There is still no divergence warning from momentum indicators.
Trading Idea
Wait for better trading Idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3379
Target price:
Protective stop :
Outlook
The index again created a new intraday record high at 3392 on Monday after the index rebounded from the price support which coincided with the trend channel and the 20EMA at 3300. The 20EMA is now acting as support at 3336, which is also the lower channel support. 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.
Trading Idea
Wait for better trading idea.
