Market News
- All three U.S. main indexes fell more than 1.5% on Friday as the coronavirus abruptly ended a record U.S. job growth streak of 113 months and amped up fears of a deep economic slowdown.
- Trump on Friday signed an order directing his administration to stop N-95 face masks and other personal protective equipment needed in the fight against the coronavirus pandemic from being exported to other countries
- New York Governor Andrew Cuomo said deaths had fallen slightly from the prior day, even though he cautioned that it was not yet clear whether the crisis in the state was reaching a plateau.
Market Views
- Stocks in Asia Pacific rose in Monday morning trade while markets in China are closed for a holiday today. Nikkei 225 index rose 429 points while Hang Seng index gained 107 points.
- Oil prices fell in the morning after a scheduled meeting between OPEC and its allies was pushed back, raising fears that a production cut could face challenges.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 21,727
Target price:
Protective stop:
Outlook
The index was capped by the falling 20EMA, which is also the Fibonacci 38% of the correction point at 22,655. It could be moving within a pennant consolidation pattern. We would like to see this index moving above 22,065 to break out from the pennant pattern, and to confirm the index will continue its upward momentum. Stochastic is still rising at the moment but MACD is still bearish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 23,456
Target price: 21,700
Protective stop: 24,150
Outlook
The 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. This index tested the 20EMA resistance again today. It 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 down 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 : 7794
Target price :
Protective stop:
Outlook
This index was resisted by the falling 20EMA, which coincides with the Fibonacci 38% retracement point. The price resistance at 7911 provides another resistance as well. It could be moving within a consolidation pattern now and we would like to see price moving and closing above 7911 for 8310. Stochastic is turning down but is still strong at the moment. MACD is still bearish but the fast line is rising above the zero line.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend :
Recommendation :
Last : 2568
Target price:
Protective stop :
Outlook
The corrective rally of this index was capped at the falling 20EMA, which is also the Fibonacci 38% correction point. Price could be moving within a consolidation pattern now. It has to surpass 2640 for 2790. A move below 2430 would accelerate the downside and we are likely to see price testing its low at 2184 again. Stochastic is crossing down. MACD is still bearish but the fast line is approaching the zero line.
Trading Idea
Sell 2595 for 2390 with a stop above 2655.
