- Stocks in Wall Street tumbled on Friday, ending a massive three-day surge after doubts about the fate of the U.S. economy resurfaced and the number of coronavirus cases in the country climbed. Dow Jones plunged 915 points, while S&P 500 and Nasdaq Composite fell more than 3.3%.
- U.S. stocks deepened their losses late in the session, even after the House of Representatives approved a $2.2 trillion aid package, the largest in American history, as the number of U.S. cases passed 100,000, surpassed China and Italy as the country with the most coronavirus cases.
- Trump accused hospitals on Sunday of hoarding ventilators that are in scarce supply across the United States as the coronavirus spreads, adding any hospitals not using the devices must release them.
- Stocks in Asia fell on Monday morning as investors continue to assess the economic impact of the global coronavirus pandemic that continues to spread rapidly. Nikkei 225 index fell 626 points while Hang Seng index declined 341 points.
- Oil prices plunged in the morning of Asian hours, with international benchmark Brent crude futures down 6.26% while U.S. crude futures dropped 5.11%.
Dow Jones Index
(CFD Symbol: US30)
Last : 21,445
Last week’s rebound of this index was capped at the falling 20EMA, which is also the Fibonacci 38% of the correction point. Price will need to move above this level for further upside towards 23,870. We are likely to see price moving lower towards 20,430 if price fail to penetrate above the resistance at 22,530. Stochastic is moving higher but is still weak at the moment. MACD is still bearish.
Sell 22,500 for 21,210 with stop above 23,215.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short
Last : 23,250
Target price: 21,700
Protective stop: 24,150
Last week’s rebound from the 21,006 low was capped at the falling 20EMA, which is also the Fibonacci 38% retracement point of the decline that started since Jan 20. Price has to surpass the resistance at 24, 030 for more upside to 25,130. Otherwise, we are likely to see a price decline back to test the low at 21,450 again. Stochastic is turning up at the moment but MACD is still bearish.
Sell 23,150 for 21,700 with stop above 24,150 was filled on 25 Mar 2020.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 7563
Target price :
Last week’s rebound was resisted at the falling 20EMA, which coincides with the Fibonacci 38% retracement point. We would like to see price moving above this resistance for 8190. Any failure to penetrate above this level would likely to bring price lower to 7270 again. Stochastic is turning up at the moment but MACD is still bearish.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Last : 2530
Protective stop :
We have seen a price rebound of this index after forming a Doji candlestick pattern last Monday. However, this corrective rally was capped at the falling 20EMA, which is also the Fibonacci 38% correction point. Price has to surpass this level for 2790, or we would see price moving lower to 2415. Stochastic is rising at the moment but MACD is still bearish.
Wait for better trading idea