Market News
- Wall Street gained more than 1% on Monday at the onset of a hectic earnings week, as investors turned a hopeful eye toward several U.S. states that are relaxing shutdown restrictions put in place to curb the spread of the COVID-19 pandemic.
- Although trillions of dollars in stimulus have helped the S&P 500 recover nearly 30% from its March lows, some analysts say more gains may be capped as the economic damage grows, unless there is progress on treatments for the disease.
- Economists expect first-quarter U.S. GDP to have shrunk at a 4% annualized rate when the Commerce Department releases its report on Wednesday. U.S. Fed will also be watched when it concludes its monetary policy meeting on Wednesday.
Market Views
- Asian markets were mixed on Tuesday morning, erasing earlier gains as a renewed decline in oil prices overshadowed optimism about the easing of coronavirus-related restrictions seen globally. Nikkei 225 index fell 122 points while Hang Seng index rose 84 points.
- Oil prices weakened sharply, with the U.S. crude plunged 23.55% on continued concern about oversupply and a lack of storage space. The front-month contract was trading at lower-than-usual volumes as traders moved to later months in futures contracts.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Short
Last : 24,026
Target price: 22,530
Protective stop: 24,100 triggered
Outlook
Price has been correcting after a bearish engulfing pattern was formed last Monday. The 20EMA is rising at the moment and has provided support to price for the past four days. A move above its recent high of 24,450 will invalidate the bearish engulfing and hint for more upside. Otherwise, price is likely to move lower if it break below the 20EMA support at 23,350. Stochastic is turning up 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 : 24,425
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 hovering around the flat 20EMA. This index has to break above the strong resistance zone for more upside. This index is likely to range unless it can move its resistance or break below its support. Stochastic could be turning up and a bullish MACD crossover is likely.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8805
Target price :
Protective stop:
Outlook
The 20EMA has provided a support to the price and we have seen price moving along with the 20EMA for the past few days. This index tested its overhead support-turned-resistance zone at 9000 last night but closed lower. This resistance is likely to break through for a test of its all-time high at 9753. Stochastic is near to overbought zone but is likely to move up again. MACD has turned bullish as well.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2864
Target price:
Protective stop:
Outlook
Price was supported by the rising 20EMA for the past few days. It has to move above its recent high of 2893 for further rally towards 3130. A move below the 20EMA will accelerate the downside towards 2647. Stochastic is turning up at the moment. MACD has turned bullish but a bearish crossover was seen.
Trading Idea
Wait for better trading idea
