Market News
- U.S. crude and benchmark Brent prices climbed after a collapse in the past two days, sending the S&P 500 energy index up 3.6%. Dow Jones surged 456 points and S&P 500 and Nasdaq Composite rose more than 2.2%.
- Congress looked on course to approve nearly $500 billion more in aid to help small businesses ride out the coronavirus crisis also help to boost the market sentiment.
- The House of Representatives is expected on Thursday to clear the relief, which would be the fourth coronavirus measure passed by Congress, and would boost the overall federal financial response to almost $3 trillion.
Market Views
- Asian markets edged higher on Thursday morning after rebounding crude prices and the promise of more U.S. government aid to ease the economic pain inflicted by the coronavirus crisis helped calm global equity markets. Nikkei 225 index rose 128 points and Hang Seng index was up 44 points.
- Brent oil rose more than 7%, earlier in the day after touching its lowest level since 1999, on the prospects for further production cuts to reduce the glut in the oil market.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Short
Last : 23,368
Target price: 22,530
Protective stop: 24,100
Outlook
Price has been correcting after a bearish engulfing pattern was formed on Monday. It is now testing the 20EMA support at 23,120.If the index stays supported above the 20EMA, we may see a test of the high at 24,446 again. However, a violation of the 20EMA could bring price lower towards 22,050. Stochastic is turning down at the moment. MACD is bullish but a bearish crossover was 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 : 23,886
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. Price is now being capped by the 20EMA resistance at 24,077. A failure penetration of the 20EMA could bring price lower towards 22,920. Price is likely to stay within this range till a breakout. Stochastic is turning down at the moment. MACD is bullish but just had a bearish crossover.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8606
Target price :
Protective stop:
Outlook
We have seen a price correction after this index reached its support-turned-resistance zone at 9000. Price is now supported at the 20EMA support at 8328. A violation of this 20EMA support could hint at a deeper correction ahead. Price has to surpass 9000 for further rally. Stochastic is turning down at the moment. MACD is bullish but had a bearish crossover.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2788
Target price:
Protective stop:
Outlook
This index has been moving lower after a Doji Star was formed since Friday. Price was also capped just above 2853. It is now sitting at the 20EMA support at 2726. We are likely to see price move lower to 2647 if this index break below the 20EMA. Stochastic is turning down at the moment. MACD is bullish but just had a bearish crossover.
Trading Idea
Wait for better trading idea
