Market News
- A late-session rally pushed Wall Street to solid gains on Tuesday as market participants looked past widespread social unrest and pandemic worries to focus instead on easing lockdown restrictions and signs of economic recovery. All three major indices have been approaching their all-time closing highs.
- The market is not paying attention to the potential problems that the protests could have on local economies. If the violence continues, it might worsen the coronavirus’ impact on businesses, chief market economist at Spartan Capital Securities in New York said.
- Friday’s crucial jobs report from the Labour Department will be watched closely for a clearer picture of the extent of economic damage wrought by mandated lockdowns. The report is expected to show the unemployment rate surging to a historic 19.7%.
Market Views
- Asian stocks were poised to follow the global rally on Wednesday morning as hopes of more government stimulus bolstered riskier assets and overshadowed a host of other worries from the coronavirus to Hong Kong and growing U.S. civil unrest. Hang Seng index rose 350 points and Nikkei 225 index gained 256 points.
- Oil prices climbed more than 3% on Tuesday on renewed U.S. demand for gasoline and hopes that major crude producers such as Saudi Arabia and Russia will honour their pledges to cut crude production and will not damage the global economy by changing course.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,829
Target price:
Protective stop:
Outlook
This index is hovering inside the gap resistance zone that ranged from 25,220 to 25,800. It broke above the Pennant pattern last night and we would like to see a followed-through breakout 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 at the overbought region but MACD is bullish.
Trading Idea
Buy 25,750 for 26,900 with stop below 25,400
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,342
Target price:
Protective stop:
Outlook
A rising window was created two days ago 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
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9670
Target price :
Protective stop:
Outlook
Price broke above the price resistance high of 9600 last night. The 20EMA is rising at the moment and is acting as first layer of support to price. The next resistance lies at its all-time high at 9753. There is a good chance of seeing 9753 but caution is advised as 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.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3087
Target price:
Protective stop:
Outlook
This index has been rising along with the rising 20EMA which is acting as support to the price rally after breaking above the Flag pattern and also the gap resistance at 2965. The next resistance comes in at 3130 and 3182. Stochastic is at the overbought region and MACD is bullish and both its lines are rising at the moment.
Trading Idea
Wait for better trading idea.
