Market News
- Wall Street climbed higher on Wednesday as investors again bet on a swift economic recovery from coronavirus-driven lockdowns and the potential for more stimulus measures from the Federal Reserve to keep the economy on a firm recovery track.
- Minutes from the Fed’s April meeting released on Wednesday showed policymakers affirmed a pledge to keep interest rates near zero until they are confident the economy is on track to recovery.
- Lawmakers in the U.S. House of Representatives plan to vote next week on giving small businesses more time to utilize their coronavirus aid under the Paycheck Protection Program, House Speaker Nancy Pelosi said on Wednesday.
Market Views
- Asian shares were poised to open higher on Thursday morning after global equities and crude prices rallied overnight on hopes of a rapid economic recovery and government support. Nikkei 225 index rose 45 points and Hang Seng index gained 32 points.
- The World Health Organization expressed concern on Wednesday about the rising number of new coronavirus cases in poor countries, even as many rich nations have begun emerging from lockdown.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long
Last : 24,412
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 and a bullish crossover was seen.
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 : 24,264
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 upper edge of the consolidation, and we could see price moving lower to the lower edge if it breaks below the 20EMA at 24,200. Price has to break above the upper edge to be bullish and for further upside. Stochastic is turning up at the moment and MACD is bullish.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9442
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 seen.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2950
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 rising at the moment. MACD is bullish and a bullish crossover was seen.
Trading Idea
Wait for better trading idea.
