Market News
- Wall Street posted gains on Monday as signs of U.S. economic recovery helped offset jitters over increasingly violent social unrest amid an ongoing pandemic and rising U.S.-China tensions. Market leaders Facebook, Apple and Amazon provided the biggest lift to S&P 500 and Nasdaq, while Boeing gave the Dow its biggest boost.
- The White House called for “law and order” after six nights of widespread, violent demonstrations triggered by the death of George Floyd at the hands of police, even as the country reels from the economic effects of pandemic-related lockdowns.
- On Monday, Trump vowed to use force to end violent protests in American cities and urged state governors to crack down on protests over racial inequality that have engulfed the nation’s major cities, as officials extended curfews to prevent a seventh night of looting and vandalism.
Market Views
- Asian stocks eked out gains on Tuesday morning as investors’ focus on the prospects of a global coronavirus recovery won out over familiar worries about Sino-U.S. relations and the depth of economic damage. Hang Seng index rose 106 points and Nikkei 225 index gained 236 points.
- The Sino-U.S. tensions are back to weigh on the markets as China ordered state-owned firms to halt purchases of U.S. soybeans and pork, in retaliation for Trump’s announcement that he would end special treatment for Hong Kong following China’s move to tighten security measures in the territory.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,382
Target price:
Protective stop:
Outlook
This index is hovering inside the gap resistance zone that ranged from 25,220 to 25,800. It could also be consolidating within a Pennant chart pattern right now. We would like to see a Pennant breakout to be followed by price breakthrough of the gap resistance zone for further upside towards 27,000. If this index is unable to move above the gap resistance zone, we could expect a correction to follow and a decline to 23,262. Stochastic is turning down but MACD is bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 23,892
Target price:
Protective stop:
Outlook
A rising window was created yesterday and we have seen price rebounded into the consolidation zone that ranged from 23,400 to 25,000. We see price moving towards the upper end of the consolidation zone at 24,800. This index will need to move above 25,000 to be bullish. Stochastic is turning up at the moment. MACD is bearish but a bullish crossover was just seen.
Trading Idea
Buy 23,700 for 24,800 with a stop below 23,100
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9580
Target price :
Protective stop:
Outlook
Price has been rising along with the rising 20EMA which is acting as first layer of support to price. It is now capped by the price resistance high at 9600. It has to penetrate above 9600 in order to move to its all-time high at 9753. However, there are divergence warnings given from both the Stochastic and the MACD. Stochastic is already inside the overbought zone. MACD is still bullish but is flat at the moment. Beware of a reversal in trend.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 22,345
Target price:
Protective stop:
Outlook
This index has been rising after breaking above the gap resistance at 20,440 and the Fibonacci 62% correction point that came in at 20,730. We expect this index to move to the next resistance, which lies at the next gap resistance that ranged from 23,000 to 23,220. Stochastic is still rising at the moment. MACD is also bullish. 20EMA is also rising and hinting of a bullish uptrend.
Trading Idea
Wait for better trading idea.
