- Wall Street ended lower on Thursday, a day after hitting two-month highs, on a fresh wave of China-U.S. tensions that raised doubts about the trade deal reached early this year between the world’s two largest economies.
- Trump said U.S. would react strongly if China imposes national security laws for Hong Kong in response to last year’s often violent pro-democracy protests.
- Earlier this month, the U.S. State Department delayed a report to Congress assessing whether Hong Kong enjoys sufficient autonomy from China to continue receiving special treatment from U.S.
- Asian shares tumbled on Friday morning after Beijing moved to impose a new security law on the city after last year’s pro-democracy unrest, risking fresh protests and further straining fast-deteriorating U.S.-China ties. Hang Seng index plunged 961 points and Nikkei 225 index fell 90 points.
- Markets were little fazed by China’s announcement that it would not set an economic growth target this year for the first time in decades and its pledge of more government support for the virus-hit economy at the start of the annual parliament meeting, which had been widely expected.
Dow Jones Index
(CFD Symbol: US30)
Recommendation : Long
Last : 24,270
Target price: 25,200
Protective stop: 24,090
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.
Buy 24,380 for 25,200 with a stop below 23,900 was filled on 19 May.
Raise stop to 24,090 on 22 May.
Hang Seng Index
(CFD Symbol: HK50)
Last : 23,170
This index has been ranging from 23,400 to 25,000 since April 20. Today, a falling window was seen and there is a bearish candlestick that followed-through with a break out below the consolidation range. We are likely to see price moving lower towards the gap support at 22,665 or even lower at the rectangle target of 22,020. Stochastic is turning down at the moment. MACD is bullish but a bearish crossover was seen
Sell 23,300 with stop above 23,850 for 22,670.
Nasdaq 100 Index
(CFD Symbol: USTec)
Last : 9303
Target price :
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 moving higher. MACD has turned bullish but 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. 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 bearish crossover was seen.
Wait for better trading idea.