Market News
- U.S. stocks managed to post gains on Thursday after recent steep selloffs as policymakers around the world took further emergency actions and try to assist financial markets cope with deep coronavirus-driven economic damage.
- The U.S. crude price spike by 25% in their largest single-day gain on record, while the S&P 500 energy index rose 6.8%, leading gains among S&P 500. The Nasdaq Composite gained 2.3% while the Dow ended the day with 188 points higher.
- Trump called on U.S. health regulators to expedite potential therapies aimed at treating COVID-19, the respiratory disease caused by the virus, and the White House sounded upbeat on the chances of passage of hundreds of billions of dollars of aid in Congress.
Market Views
- Asian shares sought a reprieve on Friday morning as Wall Street eked out gains, bonds rallied and oil boasted its biggest bounce on record, though a panicked rush into U.S. dollars suggested the crisis was far from done. Hang Seng index rose 756 points while Nikkei 225 index fell 173 points
- Americans filing for unemployment benefits surged this week, and layoffs are set to rise further as more regions ask their residents to stop normal life in order to halt the spread of the virus.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 19,919
Target price:
Protective stop:
Outlook
This index continued its decline overnight, but didn’t violate its previous day’s low of 18,897. As long as this low is not broken, we are likely to see a technical rebound to test 21,460 if price move above 20,522. The next support level is at the Fibonacci 261.8% point at 16,721. Stochastic is deep into the oversold region and could be turning up. MACD is still bearish but the fast line is moving higher.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 22,288
Target price:
Protective stop:
Outlook
We have seen this index continued its decline to a low at 21,006 yesterday. A Hammer candlestick pattern was formed yesterday as well and we are likely to see a technical rebound to 23,700 if price moves above 22,400. Any decline below yesterdays’ low is likely to move further down to 20,690, which is the Fibonacci 261.8% of the first decline if the Hammer’s low is violated. Stochastic is in the oversold region and could be turning up. MACD is still bearish but the fast line is moving higher.
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7292
Target price :
Protective stop:
Outlook
Price has been hovering around the Fibonacci 161% projection level for the past six days. The index has to move above 7558 for 7910. A break of the low at 6926 will trigger more downside to 6495. Stochastic has a divergence warning but is still weak at the moment. MACD is bearish but the fast line is moving higher and there is likely to have a bullish crossover.
Trading Idea
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S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2379
Target price:
Protective stop :
Outlook
Price did not break below Wednesday’s low of 2275 last night. As long as this low is not violated, we could see a technical rebound to test 2610. This index could be heading towards 1974 if price break below 2275. Stochastic is at the oversold region and is still weak at the moment. Stochastic is starting to show divergence. MACD is still bearish and there is no sign of reversal as yet, but a bullish MACD crossover is likely in the near term.
Trading Idea
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