Market News
- U.S. stocks rocketed higher on Monday, with each of the major indexes rallying at least 7%, after a fall in the daily death toll in New York, the country’s biggest coronavirus hot spot, fuelled optimism a levelling off of the pandemic was on the horizon.
- New York Governor Andrew Cuomo said on Monday that hospitalizations of coronavirus patients are down and the rate of the rise in deaths has levelled off in the hardest-hit state but he cautioned against complacency.
- Fed on Monday moved to bolster a new small-business lending program by allowing banks to turn those loans over to the U.S. central bank for cash, easing concerns among banks about getting stuck holding the low interest loans.
Market Views
- Asian stock markets rallied for a second day on Tuesday, buoyed by tentative signs the coronavirus crisis may be levelling off in New York and receding in Europe. Hang Seng index rose 184 points.
- Nikkei 225 index rose 2% and has erased most of last week’s losses after Prime Minister Shinzo Abe promised a massive $991 billion economic stimulus package, which equal to 20% of GDP.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 22,536
Target price:
Protective stop:
Outlook
This index managed to break out from the pennant consolidation pattern with a long bullish candlestick last night. It is a hint that the upward momentum could resume. Price surpassed the 20EMA for the first time since end-Feb. We are likely to see price moving higher towards 23,870 and maybe higher at 25,220. Stochastic is still rising at the moment. MACD is still bearish but the fast line is rising above the zero line.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short
Last : 23,804
Target price: 21,700
Protective stop: 24,150 triggered on 6 April
Outlook
This index appears to break out from the Flag pattern, which is a continuation pattern. It managed to break above the 20EMA that capped price rally since end-Feb as well. We would like to see price stay firm above the 20EMA for further upside at 24,940. Otherwise, we may see price moving lower again. Stochastic is crossing down. MACD is still bearish but the fast line is above the zero line.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 7976
Target price :
Protective stop:
Outlook
This index managed to penetrate above the price resistance at 7911 last night with a bullish candlestick. It broke out from the consolidation pattern as well. Price is likely to move higher towards the gap resistance at 8360 as long as it stay above 7911. 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 : 2640
Target price:
Protective stop :
Outlook
Price has moved within a consolidation pattern and we have seen this index testing its consolidation high at 2676, which is also the Fibonacci 38% correction point. It has to move above 2676 for further upside at 2790. Otherwise, we are likely to see this index being capped at this resistance and moving lower again. Stochastic is crossing down. MACD is still bearish but the fast line is above the zero line.
Trading Idea
Sell 2595 for 2390 with a stop above 2655. Stop was triggered on 6 April.
