Market News
- S&P 500 barely closed higher on Monday, but the Nasdaq posted its sixth consecutive advance as technology and healthcare shares provided the biggest lift to all three major U.S. stock indexes.
- Investors weighed new spikes in coronavirus infections with expectations that an economy crippled by mandated shutdowns will soon be re-opened for business.
- Trump on Monday said he is not in favour of the U.S. reopening negotiations with China on Phase 1 of a trade deal, which the two countries agreed on at the beginning of the year.
Market Views
- Asian markets slipped on Tuesday morning amid growing investor worries about a second wave of coronavirus infections after the Chinese city where the pandemic originated reported its first new cases since its lockdown was lifted. Hang Seng index slid 372 points and Nikkei 225 index fell 41 points.
- The central Chinese city of Wuhan reported five new confirmed cases on Monday, casting doubts over efforts to lower coronavirus-related restrictions across the country as businesses restart and individuals went back to work.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 23,985
Target price:
Protective stop:
Outlook
Price is rising along with the rising 20EMA, which is acting as a support to the price. We foresee that this index is likely to move higher towards the overhead gap resistance zone that range from 25,220 to 25,800. It has to surpass this resistance zone for further upside. If this index were to drop below the 20EMA, it could be heading lower to 22,337. Stochastic is turning up. 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 : 24,186
Target price:
Protective stop:
Outlook
Yesterday, this index ended the day with a Doji candlestick after it tested the gap that was created on 4th May. This gap is also near to its overhead strong gap resistance zone that range from 24,700 to 25,010 again, which is also coincided with the Fibonacci 38% correction point of the decline. This resistance zone has to be surpassed for further upside; otherwise we could see a price correction again. Stochastic is turning up and MACD is bullish.
Trading Idea
Sell 24,350 with stop above 24,850 for 23,600
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9233
Target price :
Protective stop:
Outlook
This index had penetrated above its overhead support-turned-resistance zone of 9000 last Thursday 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 was seen.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2902
Target price:
Protective stop:
Outlook
This index has rebounded from the 20EMA support and tested 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 to 3130. However, inability to break above 2973 will result in a test of 2790 again. Stochastic is rising at the moment. MACD is bullish and a bullish crossover is likely.
Trading Idea
Wait for better trading idea.
