Market News
- U.S. stocks gyrated on Friday before ending slightly higher, as investors worried about increased China-U.S. trade hostilities and disappointing retail sales figures, while signs of a pick-up in crude demand boosted oil prices.
- The economies of Europe and the U.S. have likely bottomed out in April and are slowly starting to come back to life as they gradually lifted the restrictions, wrote Barclay bank’s economist Christian Keller in a note.
- Fed Chair Jerome Powell took a cautious line in an interview over the weekend, saying a U.S. economic recovery may stretch deep into next year and a full comeback might depend on a coronavirus vaccine.
Market Views
- Asian shares were led higher by S&P 500 futures on Monday morning and oil prices hit a five-week peak as countries’ efforts to re-open their economies stirred hopes the world was nearer to emerging from recession. Nikkei 225 index rose 138 points and Hang Seng index gained 117 points.
- Japan’s economy slipped into recession for the first time in 4-1/2 years, putting the nation on course for its deepest post-war slump as the coronavirus crisis ravages businesses and consumers.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 23,876
Target price:
Protective stop:
Outlook
Price has dropped below the 20EMA support, but managed to close higher on Thursday. It could be moving within a Flag consolidation pattern, where we would like to see a break above the upper declining trendline resistance at around 24,200 for a test of the previous high at 24,900 and the gap resistance at 25,260. Inability to break above 24,200 could bring price lower to 23,337. Stochastic is turning down at the moment. MACD is bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,952
Target price:
Protective stop:
Outlook
This index has been ranging from 23,400 to 25,000 since April 20. It is now trading near the lower edge of the bottom, and could be forming a bullish One White Soldier candlestick pattern that is alike on the one on 5 May. If price manage to close with the same pattern today, we are likely to see price moving higher towards the upper end of the consolidation range at 25,000. Stochastic is turning down but MACD is bullish.
Trading Idea
Buy 23,800 for 24,950 with stop below 23,420.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9196
Target price :
Protective stop:
Outlook
Price has been supported by the rising 20EMA support at 8920, which is also near to the resistance-turned-support zone of 9000. We will need to see price breakthrough the high of 9346 to invalidate the Bearish Engulfing reversal candlestick formed on 12 May. It has to penetrate above 9346 for further upside at the all-time high at 9753. Stochastic is falling at the moment. MACD has turned bullish but a bullish crossover was not seen yet.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2883
Target price:
Protective stop:
Outlook
This index was capped at the gap resistance zone which coincided with the Fibonacci 62% correction point at 2933. We would like to see price breakthrough the gap resistance of 2965 for further upside at 3130. However, inability to break above 2965 will result in a test of 2790 again. Stochastic is falling at the moment but MACD is bullish
Trading Idea
Wait for better trading idea.
