Market News
- Wall Street sold off sharply on Friday after Trump revived a threat of new tariffs against China in response to the COVID-19 pandemic, which has brought global economies to a grinding halt. Dow Jones tumbled 622 points and Nasdaq Composite fell 3.2%.
- Trump and Secretary of State Mike Pompeo added to worries with fresh efforts to pin blame for the pandemic on China, where the new coronavirus outbreak is believed to have originated.
- U.S. manufacturing activity skidded to an 11-year low last month as lockdowns shuttered factories, according to the Institute for Supply Management’s purchasing managers’ index.
Market Views
- Asian markets plunged on Monday morning as a U.S.-China spat over the origin of the coronavirus put the brakes on optimism about an economic re-start as countries around the world ease restrictions. Hang Seng index plunged 948 points and Nikkei 225 index slid 574 points.
- U.S. crude futures sank in early trade on worries about oil oversupply and crumbling demand, even as some U.S. states and cities around the world start to ease coronavirus pandemic restrictions.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 23,580
Target price:
Protective stop:
Outlook
Price appears to be resisted near the gap resistance zone that range from 25,220 to 25,800. A pullback was seen last week whereby this index is now testing the 20EMA support at 23,580. If price is able to hold at the 20EMA support, there is chance for this index testing its gap resistance zone again. Inability to stay above the 20EMA could result in a test of 21,540. Stochastic is turning down at the moment. MACD is bullish but has shown a divergence warning.
Trading Idea
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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,709
Target price:
Protective stop:
Outlook
This index was resisted by the strong gap resistance zone that range from 24,700 to 25,010, as it also coincided with the Fibonacci 38% correction point of the decline. A big gap down was seen today and we are likely to see price testing the low at 22,610. Stochastic is turning down at the moment. MACD has given divergence warning and a bearish crossover was seen.
Trading Idea
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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8673
Target price :
Protective stop:
Outlook
This index broke above its overhead support-turned-resistance zone of 9000 last Wednesday with a bullish candlestick. However, it fell back and price is now testing the 20EMA support at 8570. As long as this index can hold at the 20EMA, there is chance for this index to test its high again. Inability to stay above 20EMA will result in price moving lower again. Stochastic is falling at the moment and MACD has turned bullish.
Trading Idea
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S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2815
Target price:
Protective stop:
Outlook
Price was capped by the gap resistance zone which coincided with the Fibonacci 62% correction point at 2933. We have seen a price correction as price cannot surpass this gap resistance zone. It is now testing the 20EMA at 2800. If price is able to hold at 20EMA, we are likely to see price testing 2933 again. Violation of the 20EMA could bring price falling towards 2647. Stochastic is falling. MACD is bullish but a bullish crossover has not seen yet.
Trading Idea
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