Market News
- Wall Street tumbled for a second straight day on Tuesday as a collapse in U.S. oil prices and glum forecasts by companies worsened fears of a deep economic downturn. Dow Jones plunged 631 points while S&P 500 and Nasdaq Composite fell more than 3%.
- Trump called on the government to make funds available to the U.S. oil and gas industry, calling Monday’s crash a “financial squeeze” and mooting a halt to Saudi imports.
- The U.S. Senate on Tuesday unanimously approved $484 billion in fresh relief for the U.S. economy and hospitals hammered by the coronavirus pandemic, sending the measure to the House of Representatives for final passage later this week.
Market Views
- Asian share markets were lower on Wednesday morning as the floor fell out from under U.S. crude prices, exposing the deep damage the coronavirus pandemic has had on global economic demand. Nikkei 225 index fell 225 points and Hang Seng index slid 191 points.
- Earlier this week, the May U.S. WTI futures contract crashed into negative pricing for the first time in history. In addition to massive oversupply concerns, analysts say the plunge also highlights the technical constraints the market faces in responding to shocks.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Short
Last : 23,051
Target price: 22,530
Protective stop: 24,100
Outlook
Price broke above the price resistance of 24,080 last Friday, but created a Doji Star candlestick pattern, which is a reversal signal. A bearish engulfing pattern was followed-through last night. The 20EMA will provide a first layer of support at 23,060. A violation of the 20EMA will hint at a further correction towards 21,466. Stochastic is turning down. MACD has turned bullish a bearish crossover is seen.
Trading Idea
Sell 23,450 for 22,530 with a stop above 24,100 was filled on 21 April.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,636
Target price:
Protective stop:
Outlook
Price was capped by the gap resistance zone that range from 24,700 to 25,010. This could be a strong resistance zone as it also coincided with the Fibonacci 38% correction point of the decline. We are likely to see price moving lower towards 22,920. Stochastic is turning down at the moment. MACD has turned bullish but just had a bearish crossover
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8458
Target price :
Protective stop:
Outlook
This index reached its support-turned-resistance zone at 9000 but price was resisted by this resistance zone. We are likely to see a correction to the support at 20EMA point at 8250. A break of this support is likely to send price lower to 7828. Price will need to penetrate above 9000 for a test of its all-time high. Stochastic is turning down from the overbought region. MACD has turned bullish with both lines are above the zero line but had a bearish crossover.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2745
Target price:
Protective stop:
Outlook
This index has been moving lower after a Doji was formed since Friday. Price was also capped just above 2853. A Doji star candlestick price pattern has send price lower as well. It is now sitting at the 20EMA support at 2726. We are likely to see price move lower to 2622 if this index break below the 20EMA. Stochastic is turning down at the moment. MACD has turned bullish but just had a bearish crossover.
Trading Idea
Wait for better trading idea
