Market News
- Dow Jones surged over 5% on Monday, its biggest daily jump since 2009, recovered some losses from last week’s steep sell-off sparked by fears about the coronavirus. S&P 500 and Nasdaq Composite gained more than 4% in the rebound as well.
- Apple jumped 9.3% in its largest one-session leap since 2008. The iPhone maker is still down nearly 9% from its record high close on Feb. 12. Many investors will consider the index to remain in a correction until it reclaims its high.
- U.S. factory manufacturing activity slowed in February as new orders contracted, reflecting worries about supply chain disruptions related to the fast-spreading coronavirus outbreak, which has revived financial market fears of a recession.
Market Views
- Asia Pacific markets were mixed on Tuesday morning on mounting speculation policymakers around the world would move to ease the economic fallout from the spreading coronavirus. Hang Seng index rose 204 points while Nikkei 225 index fell 105 points.
- Bank of Japan Governor Haruhiko Kuroda said on Monday that Japan’s central bank would take necessary steps to stabilize financial markets. That followed a similar move by Fed Chair Jerome Powell last Friday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,478
Target price:
Protective stop:
Outlook
Last Friday, this index ended the week with a Hammer candlestick pattern, after declining for seven consecutive days. We are likely to see a technical rebound to test 27,145-27,320 if the Hammer’s low at 24,685 holds. The next support lies at 24,600 if the Hammer’s low is taken out. Stochastic is turning up from near to the oversold region. MACD has turned bearish
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,478
Target price:
Protective stop:
Outlook
Last Friday, this index ended the day with a Hammer like candlestick pattern, which could be a sign of potential reversal. It is also sitting just above at its previous low, which has provided support to the price decline for three occasions. As long as the low at 25,640 holds, there is chance for this index to move higher to test 26,860. Stochastic is crossing up from the oversold zone. MACD is bearish but could be forming a divergence warning.
Trading Idea
Buy 26,300 for 26850 with stop below 26,000
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8824
Target price :
Protective stop:
Outlook
The index rebounded and formed a potential Hammer looking candlestick pattern last Friday, after encountering a sharp sell-off during the week. It was sitting at the Fibonacci 62% correction point of Oct 19 to Feb 20 price’s swing. As long as the Hammer’s low of 8123 holds, we could see a technical rebound to test 8938 or even higher at the 20EMA at 9087. Stochastic is turning up from near to the oversold region. MACD is bearish but the fast line is moving higher.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 3079
Target price:
Protective stop :
Outlook
A sharp sell-off last week has sent this index lower to its previous low at 2853. A potential Hammer candlestick was formed last Friday, which could be a sign of potential low and a possible reversal. We could see this index moving higher towards 3062 if the low at 2853 holds. Stochastic is moving higher and near to the oversold region. MACD is bearish at the moment.
Trading Idea
Wait for better trading idea
