Market News
- The fast spreading coronavirus issue continued to weigh on markets whereby we have seen a six straight day of decline in Wall Street. The Dow plummeted 1,100 points last night, bringing its decline from a record high to more than 10%. It was also the Dow’s biggest one-day point decline in history.
- The Centres for Disease Control and Prevention (CDC) confirmed on Wednesday evening the first American coronavirus case of unknown origin in Northern California, indicating possible “community spread” of the disease.
- Trump tried to assuage concerns over the coronavirus outbreak on Wednesday night and said the risk of coronavirus to people in the U.S. is still “very low” but added that they are going to “spend whatever’s appropriate.”
Market Views
- Asian markets headed for the worst week since the darkest days of the financial crisis in 2008 as investors braced for the coronavirus to morph into a pandemic and derail world economic growth. Hang Seng index fell 648 points and Nikkei 225 index plunged 763 points.
- The World Health Organization (WHO) said all countries need to prepare to combat the virus as the outbreak spread to major developed economies such as Germany and France.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,399
Target price:
Protective stop:
Outlook
Six days of consecutive decline have sent this index below the bullish trend channel, the two resistance-turned-support levels at 28,160 and 27,320 and the 20EMA to a low of 25,399. The next support lies at 25,070 and 24,600. The trend is bearish with no reversal in sight at the moment. Stochastic is heading lower and is near to the oversold region. MACD has turned bearish.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,113
Target price:
Protective stop:
Outlook
This index was capped by the Fibonacci 62% correction point and broken below the falling 20EMA, the gap support zone and closed below the channel. It is now sitting at the key support of its previous low point at 26,000. If this support holds, price can move higher towards 26,900. A violation of this support would accelerate towards 25,130. Stochastic is moving lower. MACD is bearish and just had a bearish crossover
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8323
Target price :
Protective stop:
Outlook
The index created a bearish Engulfing candlestick pattern on Jan 20 followed by a Three Black Crows candlestick pattern followed a few days later, which are both trend reversal patterns. It is now sitting at the Fibonacci 62% correction point of Oct 19 to Feb 20 price swing. A violation of this level would target for 8165. Stochastic is turning down but MACD is still bullish at the moment.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2950
Target price:
Protective stop :
Outlook
The index created a bearish Engulfing candlestick pattern and has moved below the falling 20EMA and also its previous low at 3213. It broke below the support at 3060-3070 and we may see this index moving lower towards 2855. Stochastic is moving lower and near to the oversold region. MACD has turned bearish.
Trading Idea
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