Market News
- Wall Street’s main indexes gained on Tuesday as healthcare stocks rallied, oil prices surged and a number of countries and U.S. states eased coronavirus-induced restrictions in an attempt to revive their economies.
- Fed’s member Clarida said during an interview with CNBC that the U.S. economy is likely to contract sharply during the second quarter as a result of intentional business shutdowns, but there is a chance the recovery could start in the second half of the year.
- Data on Tuesday showed the vast U.S. services sector fell into contraction in April for the first time in nearly 10-1/2-years.
Market Views
- Shares struggled on Wednesday morning, with markets in China faltering on their return from a long holiday as investors fretted over Sino-U.S. tensions, while oil ended an extended winning streak on oversupply risks amid weak demand. Japan is closed for holiday today while Hang Seng index rose 167 points.
- Trump has repeatedly taken aim at China as the source of the pandemic and warned that it would be held to account. He urged China to be transparent about the origins of the novel coronavirus that has killed more than a quarter of a million people worldwide since it started in the Chinese city of Wuhan late last year.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 23,892
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 23,640, 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 : 24,064
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 two days ago 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 : 8941
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: Long
Last: 2870
Target price: 2935
Protective stop: 2790
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 was filled on 5 May
