Market News
- Shares on Wall Street tumbled on Tuesday, with the Dow registering its biggest quarterly fall since 1987 and the S&P 500 its steepest quarterly drop since a decade ago on growing evidence of the massive downturn the pandemic will incur.
- The number of coronavirus infections globally headed toward 800,000. A World Health Organization official warned that even in the Asia-Pacific region, the epidemic was “far from over.”
- Trump has signed off on a plan to defer U.S. tariffs for most-favored nations for three months, according to a source familiar with the decision, but this plan would not apply to tariffs on Chinese and European goods.
Market Views
- Asian shares faced another leg lower on Wednesday morning as the coronavirus sharply slows global growth, leading a gauge of world stocks to post its biggest quarterly decline in more than a decade. Hang Seng index slid 208 points and Nikkei 225 index fell 177 points.
- Oil prices stabilized after U.S. and Russia agreed to talks to stabilize energy markets a day after crude futures hit 18-year lows. Oil has been hit by a double whammy, with U.S. crude at one point falling below $20 a barrel on Monday.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 21,606
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 : 23,437
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 could be turning down soon and 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 : 7728
Target price :
Protective stop:
Outlook
Last week’s rebound was resisted at the falling 20EMA, which coincides with the Fibonacci 38% retracement point. The price resistance at 7911 provides another resistance as well. We would like to see price moving and closing above 7911 for 8190. Any failure to penetrate above 7911 would likely to bring price lower to 7270 again. Stochastic could be turning down and MACD is still bearish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2546
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 could be turning down. MACD is still bearish.
Trading Idea
Wait for better trading idea
