Market News
- S&P 500 ended marginally lower on Thursday, wiping up the gains in earlier session after data that showed weekly U.S. jobless claims fell to 4.43 million from a revised 5.24 million and an experimental antiviral drug for the coronavirus flopped.
- A report that Gilead Science’s antiviral drug remdesivier flopped in its first randomized clinical trial, denting earlier optimism that the impact of the pandemic on the labour market was nearing its end as it did not improve patients’ condition or reduce the pathogen’s presence in the bloodstream.
- The U.S. House of Representatives on Thursday passed a $484 billion bill to expand federal loans to small businesses and hospitals overwhelmed by patients. Trump said late Thursday that he may need to extend social distancing guidelines to early summer.
Market Views
- Shares in Asia Pacific fell on Friday morning, spurred by doubts about progress in the development of drugs to treat COVID-19 and new evidence of U.S. economic damage caused by the coronavirus pandemic. Nikkei 225 index slipped 148 points and Hang Seng index was down 66 points.
- Oil prices rose on Friday, gaining further ground as some producers like Kuwait said they would move to cut output swiftly to try to counter the evaporation in global demand for fuels caused by the coronavirus pandemic.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Short
Last : 23,365
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 : 23,938
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 24,080.Price is likely to stay within this range till a breakout. A failure penetration of the 20EMA could bring price 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 : 8546
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 8330. A Doji candlestick is hinting of indecision. A violation of this 20EMA support could hint at a deeper correction ahead to 7830. Price has to surpass 9000 for further rally. Stochastic is turning down at the moment. MACD has turned bullish but had a bearish crossover.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2774
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 sent price lower as well. It is now sitting at the 20EMA support at 2740. 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
