Market News
- Dow Jones wrapped up its strongest three days in nine decades on Thursday as record weekly U.S. jobless claims came in below investors’ worst fears and the focus stayed on an unprecedented $2 trillion stimulus awaiting approval by the U.S. House of Representatives.
- The number of Americans filing claims for unemployment benefits surged to 3.28 million last week as state-wide lockdowns brought the U.S. economy to a halt and unleashed a wave of layoffs.
- Leaders of the Group of 20 major economies pledged on Thursday to inject over $5 trillion into the global economy to limit job and income losses from the coronavirus and do whatever it takes to overcome the pandemic.
Market Views
- Asian stocks rose on Friday morning as investors wagered policymakers will roll out more stimulus measures to combat the coronavirus pandemic after U.S. unemployment filings surged to a record. Nikkei 225 index rose 230 points and Hang Seng index gained 212 points.
- U.S. is now the country with the most coronavirus cases, surpassing even China, where the flu-like illness first emerged late last year. Policymakers may need to offer more stimulus as the virus slams the brakes on economic activity and increases healthcare spending.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 22,246
Target price:
Protective stop:
Outlook
This index has rebounded for three consecutive days from the low at 18,172. It is now testing the falling 20EMA, which is also the Fibonacci 38% correction point. Price is likely to continue moving higher to 23,880 if it able to surpass the 20EMA. Otherwise, we could see price retracing to 20,420. Stochastic is moving higher at the moment. MACD is still bearish but just had a bullish crossover.
Trading Idea
Sell 22,500 for 21,210 with stop above 23,215.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 23,594
Target price: 21,700
Protective stop: 24,150
Outlook
We have seen a rebound from the 21,006 low following a Hammer candlestick pattern. The index has reached a high of 24,027 yesterday, which is also the 20EMA resistance. The next resistance lies at 25,000. If price is unable to move above the 20EMA, we are likely to see a test of 21,006 again. Stochastic is turning up at the moment. MACD is still bearish.
Trading Idea
Sell 23,150 for 21,700 with stop above 24,150 was filled on 25 Mar 2020.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7767
Target price :
Protective stop:
Outlook
This index formed a spinning top reversal pattern on Monday and we had seen a price rally to a high of 7911 last night. It is also near to the falling 20EMA and the Fibonacci 38% correction point. We could see more upside at 8190 if price is able to break above this resistance. If price is unable to move above this resistance, we are likely to see the low at 6633 again. Stochastic is turning up at the moment. MACD is bearish
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2585
Target price:
Protective stop :
Outlook
Price gapped down and formed a low at 2184 on Monday, enfolding in a Doji candlestick pattern. A price rebound was seen thereafter. It is now testing the falling 20EMA, which coincides with the Fibonacci 38% correction point. Price has to break above this resistance for higher target at 2790. If this resistance is not broken, we are likely to see price moving lower again. Stochastic is rising at the moment. MACD is still bearish but just had a bullish crossover
Trading Idea
Wait for better trading idea
