Market News
- U.S. stocks rose on Monday, led in part by healthcare stocks as investors looked for shares that have become cheap and can withstand the impact to the economy from efforts to stem the spread of the coronavirus. The Dow surged 690 points, while S&P 500 and Nasdaq Composite gained 85 and 271 points.
- The Wall Street’s three major indexes remain down more than 20% from the February highs, but investors are now trying to assess the economic damage and identify which companies will be on solid footing when the economy begins to accelerate.
- U.S. Treasury Department issued guidelines on Monday to airlines and airport contractors as it prepares to quickly hand out $32 billion in cash assistance.
Market Views
- Asian shares managed a tentative rally on Tuesday morning as factory data from China held out hope of a rebound in activity even as other countries across the globe all but shut down. Hang Seng index rose 242 points and Nikkei 225 index was up 148 points.
- China’s official manufacturing purchasing managers’ index bounced to 52.0 in March, up from a record-low 35.7 in February and topping forecasts of 45.0. Analysts warned that the index could overstate the true improvement as it measures the net balance of firms reporting an expansion or contraction in activity.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 22,374
Target price:
Protective stop:
Outlook
The rebound from the low was capped at the falling 20EMA, which is also the Fibonacci 38% of the correction point at 22,655. 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 22,655. Stochastic is moving higher but is still weak at the moment. MACD is still bearish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 23,445
Target price: 21,700
Protective stop: 24,150
Outlook
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
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 : 7911
Target price :
Protective stop:
Outlook
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 7911 for 8190. Any failure to penetrate above 7911 would likely to bring price lower to 7270 again. Stochastic is turning up at the moment but MACD is still bearish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2629
Target price:
Protective stop :
Outlook
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.
Trading Idea
Sell 2,645 for 2,544 with a stop above 2,715.
