Market News
- U.S. stock indices fell to session lows on Tuesday in the wake of a report from STAT News that questioned the validity of the results of Moderna’s vaccine trial, which the company had announced on Monday.
- Powell, in testimony to the Senate Banking Committee on Tuesday, said the central bank was continuing to consider ways to accommodate additional borrowers, and Congress should consider anything to keep people out of insolvency.
- A portfolio manager at Australia’s Tribeca Investment Partners said this is probably more a stabilisation as markets have rallied hard on opening up and the potential for a V-shaped recovery, but two thirds of 223 fund managers surveyed by Bank of America reckon recent gains are a bear-market rally.
Market Views
- Stocks in Asian markets were mixed on Wednesday morning and gold and bonds firmed as a sceptical press report dented some hopes for a COVID-19 vaccine and concerns about bumps in the global recovery from the pandemic returned. Nikkei 225 index rose 151 points while Hang Seng index slid 59 points.
- Japan’s government is expected to lift its state of emergency for Osaka and Kyoto in western Japan on Thursday after the rate of coronavirus infection fell below the government’s numerical target, domestic media have reported.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long
Last : 24,387
Target price: 25,200
Protective stop: 23,900
Outlook
This index managed to stay above the Flag pattern after the breakout occurred on Monday. As long as it stays above the Flag pattern, it could be heading towards its previous high at 24,900 and the gap resistance at 25,260. A break of this gap resistance will target the next resistance at 27,000. Stochastic is turning up after a bullish crossover was seen. MACD is bullish but flat around the zero line.
Trading Idea
Buy 24,380 for 25,200 with a stop below 23,900 was filled on 19 May.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,394
Target price:
Protective stop:
Outlook
This index has been ranging from 23,400 to 25,000 since April 20. It traded near the lower edge of the bottom three days ago, and a bullish One White Soldier candlestick pattern was formed that is alike on the one on 5 May. We are likely to see price moving higher towards the upper end of the consolidation range at 25,000. Stochastic is turning up and MACD is bullish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9347
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. Price has rallied above the previous high of 9353 and we could see further upside towards the all-time high at 9753 as long as price stays above the 20EMA. Stochastic is turning up. MACD has turned bullish but a bullish crossover was not seen
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2941
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 could result in a test of 2790 again. Stochastic is falling at the moment but MACD is bullish.
Trading Idea
Wait for better trading idea.
