Market News
- Coronavirus concerns dragged down Wall Street last Friday and resulted in all three major indexes closing well above their session lows. U.S. stock futures tumbled more than 4% on Sunday as off-hours trading, a sign that investors fear the toll from the fast-spreading coronavirus will deepen.
- Italy, the country hardest hit by the virus in Europe, essentially locked down much of its wealthy north, including the financial capital Milan, in a drastic attempt to contain an outbreak after the number of cases jumped 25% in a 24-hour period to 7,375, while deaths climbed 57% to 366 on Sunday.
- Pacific Investment Management Co, one of the world’s largest investment firms, warned clients the outbreak is likely to cause a relatively mild and short recession though tight credit markets could worsen the downturn.
Market Views
- Asian shares sank on Monday morning trade session as panicked investors fled to bonds to hedge the economic shock of the coronavirus, and oil plunged more than 20% after Saudi Arabia slashed its official selling price. Nikkei 225 index plunged 1276 points and Hang Seng index slid 853 points.
- The world’s top oil exporter plans to raise its production significantly after the collapse of OPEC’s supply cut agreement with Russia, a grab for market share reminiscent of a drive in 2014 that caused prices to slump by around two thirds.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 24,635
Target price:
Protective stop:
Outlook
The corrective rebound of this index was capped at the Fibonacci 50% correction point, which coincided with the 20EMA. Price opened with a gap down this morning and it is testing its previous low at 24,685. We don’t think this low can hold. We are likely to see further decline towards Fibonacci 127% projection level at 23,360. Stochastic is turning down and is going to cross down soon. The MACD is still bearish and the fast line is moving lower
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,201
Target price:
Protective stop:
Outlook
This index was capped at the 20EMA, the lower boundary of the channel and also the Fibonacci 50% correction point last Thursday. This morning it broke below the support at 25,950 and is now testing the 14 Aug’s low at 24,947. We are likely to see more downside to 24,110 if price cannot hold above support at 24,947. Stochastic is turning down and is going to cross down soon. MACD is bearish and the fast line is moving lower.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8091
Target price :
Protective stop:
Outlook
The technical rebound was capped at the 20EMA which is also the Fibonacci 50% correction point of the Feb’s decline. Price is now testing its previous low at 8123. We are likely to see downside towards 7680 if this support is violated. Stochastic is turning down and is going to have a bearish crossover. MACD is bearish and the fast line is moving down.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2821
Target price:
Protective stop :
Outlook
The technical rebound of this index was capped at the 20EMA which is also the Fibonacci 50% correction point of the Feb’s decline. This index has fallen below its previous low at 2853. We are likely to see more downside to 2706 if this index closes below 2853 tonight. Stochastic is moving lower and is going to cross down soon. MACD is bearish and the fast line is moving down.
Trading Idea
Wait for better trading idea
