Market News
- Shares of PayPal soared 14%, boosting the S&P 500 and the Nasdaq after the company said it expects a strong recovery in payments volumes in the second quarter as social distancing drives more people to shop online. Nasdaq has erased the losses for 2020 and turned marginally positive by closing above 8,972.
- Data showed millions more Americans sought unemployment benefits last week, suggesting layoffs broadened from consumer-facing industries to other segments of the economy and could remain elevated even as many parts of the country start to reopen.
- China’s exports unexpectedly rose in April for the first time this year as factories raced to make up for lost sales due to the coronavirus pandemic.
Market Views
- Asian stocks were set to track Wall Street gains on Friday morning, after upbeat corporate earnings took the focus off upcoming data that is expected show the worst U.S. unemployment rate in more than 70 years. Nikkei 225 index was up 351 points and Hang Seng index rose 242 points.
- Trump said he would be able to report in about a week or two whether China is meeting its obligations under a trade deal, as Washington weighed punitive action against Beijing over its handling of the coronavirus outbreak.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 24,229
Target price:
Protective stop:
Outlook
Price was resisted near the gap resistance zone that range from 25,220 to 25,800 and a pullback was seen last week. It is now rebounding from the 20EMA and we are likely to see price testing 24,910 again as long as price stay well above the 20EMA support at 23,700. Stochastic could be turning up again. MACD is bullish and a bullish crossover is likely in the near term
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,274
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 four days ago and price is trying to close this gap. Inability to surpass 24,810 is likely to bring price lower. 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 : 9214
Target price :
Protective stop:
Outlook
This index broke above its overhead support-turned-resistance zone of 9000 last night after being supported by the rising 20EMA. It has also penetrated above its recent peak of 9219. Price is likely to move higher towards its all-time high at 9753. Stochastic is rising at the moment. MACD has turned bullish and a bullish crossover is likely in the coming session.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Long
Last: 2920
Target price: 2935
Protective stop: 2866
Outlook
This index has rebounded from the 20EMA support and is going to test its gap resistance zone which coincided with the Fibonacci 62% correction point at 2933. We look forward for price to surpass this resistance zone for more upside 3130. Stochastic is rising at the moment and a bullish crossover is likely. MACD is bullish and a bullish crossover is likely.
Trading Idea
Buy 2850 with stop at 2790 for 2935 was filled on 5 May. Raise stop to 2866 on 8 May.
