- Wall Street surged on Thursday as investors weighed the prospect of economic recovery against bellicose remarks from Trump regarding U.S.-China trade and a whistleblower’s dire warnings about the U.S. response to the coronavirus pandemic.
- Trump said he was open to negotiating another possible stimulus bill amid the novel coronavirus pandemic, but “was taking his time” to see if more federal action was needed.
- Investors on Friday are awaiting monthly data from China that tracks industrial production, fixed asset investment and retail sales. The retail data will be an especially insightful indicator of China’s recovery as its economy reopens.
- Asian stocks were set to rise on Friday morning amid investor optimism about the re-opening of the U.S. economy from coronavirus lockdowns and possibly more stimulus that could fuel a recovery. Hang Seng index was up 76 points and Nikkei 225 index rose 36 points.
- Oil prices settled higher on Thursday after the International Energy Agency (IEA) forecast lower global stockpiles in the second half of 2020, although worries remain that a second surge in coronavirus infections could occur in coming months
Dow Jones Index
(CFD Symbol: US30)
Last : 23,614
Price has dropped below the 20EMA, which is acting as a support to the price and it could be heading lower to 22,337. It has to stand firm above the 20EMA for a test of its overhead gap resistance zone that range from 25,220 to 25,800. Otherwise, the trend is bearish below the 20EMA. Stochastic is turning down at the moment. MACD is bullish and a bullish crossover has not seen yet.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short
Last : 23,954
Target price: 23,600 reached
Protective stop: 24,500
A Doji candlestick near the gap ended a mini rally. This gap is also near to its overhead strong gap resistance zone that range from 24,700 to 25,010 again, which 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 down and MACD is bullish.
Sell 24,350 with stop above 24,850 for 23,600. Profit target was reached on 14 May 2020.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 9108
Target price :
We have seen a correction for two consecutive nights after a bearish engulfing candlestick was formed. Price is now testing the resistance-turned-support zone of 9000. As long as price stay above the 20EMA of 8850, we could see a possible test of a high again. Stochastic is falling at the moment. MACD has turned bullish and a bearish crossover was seen.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
This index was capped at the gap resistance zone which coincided with the Fibonacci 62% correction point at 2933. As long as price stay above the 20EMA at 2840, we look forward for price to surpass the resistance zone for more upside to 3130. However, inability to break above 2973 will result in a test of 2790 again. Stochastic is falling at the moment but MACD is bullish.
Wait for better trading idea.