Market News
- U.S. stocks fell on Wednesday as dismal economic data and first-quarter earnings reports compounded concerns over the extent of damage from the coronavirus outbreak. Dow Jones fell 445 points, S&P was down 62 points and Nasdaq Composite lost 122 points.
- Financials sectors were one of the major drags of the indexes due to loan loss reserves were greater than expected in the first quarter, and it might continue into the second quarter. Shares of Citigroup and Bank of America were down more than 5% each on the day.
- Data showed on Wednesday that U.S. retail sales had plunged 8.7% in March, the biggest drop since the government started tracking the series in 1992. Output at factories was also shown to have declined by the most since 1946.
Market Views
- Asian stocks tumbled on Thursday morning as fears that the world is in its worst recession since the 1930s were heightened by data showing U.S. retailers suffered a record sales collapse in March due to the coronavirus outbreak. Nikkei 225 index slid 234 points while Hang Seng index fell 177 points.
- Oil prices, a barometer of global growth, crept from overnight lows but remained weak as poor demand outweighs support from a record output cut agreed last weekend.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 23,351
Target price:
Protective stop:
Outlook
Price has been hovering around the Fibonacci 50% correction point at 23,878 for the past four days. There is also a price high resistance at 24,080 that capped the price rally. We are likely to see this index moving lower if it unable to surpass 24,080. Currently, Stochastic is at the overbought region and is turning down. MACD is still bearish and a bearish crossover is likely in the coming session.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,995
Target price:
Protective stop:
Outlook
Price appears to be capped at the gap resistance zone that range from 24,700 to 25,010. This resistance zone also coincided with the Fibonacci 38% correction point of the decline. This could be a strong resistance zone. A bearish engulfing reversal candlestick pattern was seen yesterday. This index is likely to move lower towards 22,820. Stochastic is turning down at the moment. MACD is still bearish and a bearish crossover is likely in the next session.
Trading Idea
Sell 24,750 with a stop at 25,100 for 23,850
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8544
Target price :
Protective stop:
Outlook
This index remains strong as it continued to move higher after breaking out from the triangle consolidation pattern. It is now trading near the Fibonacci 62% correction point at 8561 and there is a potential tweezer top pattern. If price is unable to move above the recent high, it is likely to decline to 8193. Stochastic is at the overbought region. MACD has turned bullish with both lines are above the zero line.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2767
Target price:
Protective stop:
Outlook
Price is testing the support-turned-resistance level at 2853. A potential tweezer top pattern could be forming and this is a reversal pattern. If this index is unable to move above 2853, it is likely to decline lower to 2647. Stochastic is at the overbought region and is turning down. MACD has turned bullish and both lines are above the zero line, but a bearish crossover could be likely in the coming session.
Trading Idea
Sell 2790 for 2650 with a stop above 2855.
