Market News
- There was a late rally on Wall Street last night after tech shares and oil rose on easing coronavirus restrictions and prospects of an economic recovery, overcoming concerns about renewed Sino-U.S. trade tensions and the downbeat sentiment from the annual meeting of Warren Buffett’s Berkshire Hathaway.
- On Monday, New York Governor Andrew Cuomo outlined a phased reopening of business in the state hardest hit by the COVID-19 pandemic. California Governor Gavin Newsom said that retail businesses in the state may begin reopening as early as this week.
- Data on Monday showed new orders for U.S.-made goods suffered a record decline in March and could sink further as disruptions from the coronavirus fracture supply chains and depress exports.
Market Views
- Asia Pacific markets were mixed on Tuesday morning after major U.S. indexes ended up on Monday. Hang Seng index rose 135 points while Japan and China are on holiday today.
- Hong Kong’s city’s government announced on Monday that their economy contracted 8.9% in the first quarter as compared to a year ago — its largest decline on record since 1974.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 23,875
Target price:
Protective stop:
Outlook
Price appears to be resisted near the gap resistance zone that range from 25,220 to 25,800 and a pullback was seen last week. As long as this index can hold at 20EMA support at 23,610, there is chance for price to test the 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. Stochastic has a divergence warning. MACD is bullish but has shown a divergence warning.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,747
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 yesterday and we are likely to see price testing the low at 22,610. Stochastic is turning up at the moment but is still weak. MACD has given divergence warning and a bearish crossover was seen.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8861
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 tested the 20EMA support at 8570. As long as it can hold above 20EMA, there is chance for this index to move higher, but it has to surpass 9000 for more upside. Stochastic is falling at the moment but MACD has turned bullish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2852
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. As long as price can hold above 20EMA at 2800, there is chance for this index breaking above 2933 to move higher. Stochastic is falling. MACD is bullish but a bullish crossover has not seen yet.
Trading Idea
Buy 2850 with stop at 2790 for 2935
