- On Wednesday, S&P 500 and Nasdaq Composite rose to record closing highs on hopes that China would take more measures to prop up its economy, easing concerns about the economic impact of the coronavirus epidemic.
- Stocks held gains following the release of minutes from Fed’s January 2020 policy meeting, which showed policy makers were cautiously optimistic about their ability to hold interest rates steady this year while acknowledging new risks caused by the virus outbreak.
- China is widely expected to cut its benchmark lending interest rate on Thursday, which would add to measures aimed at limiting the impact from business shutdowns and travel curbs on the world’s second-largest economy.
- Asian stocks were mixed on Thursday morning, supported by a fall in coronavirus cases and expectations of more Chinese stimulus to offset the economic impact of the epidemic. Hang Seng index slid 144 points.
- The most dramatic move overnight was a steep drop in the Japanese yen, which posted its sharpest fall against the dollar in half a year, even as safe-haven assets such as gold traded firmer, pushing Nikkei 225 index to gain 237 points.
Dow Jones Index
(CFD Symbol: US30)
Last : 29,310
This index made a new record high at 29,584 on the 12th of Feb 2020 and has been declining since that date. 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 two nights ago. MACD remains bullish but there is a bearish divergence warning, and a bearish crossover is likely in the coming session.
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Hang Seng Index
(CFD Symbol: HK50)
Trend : Bullish
Recommendation : Long
Last : 27,424
Target price: 28,610
Protective stop: 27,400 triggered
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.
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)
Last : 9705
Target price :
The index is strong and bullish as it is trading above the bullish trend channel. Again, a new intraday record high was seen today at 9753. 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.
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S&P 500 Index
(CFD Symbol: US500)
Last : 3383
Protective stop :
The index again created a new intraday record high at 3397 today 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 3342, 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. MACD is still.
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