Market News
- Dow Jones plummeted 6.9% while S&P 500 and Nasdaq Composite slid more than 5.2% on Thursday, posting their worst one-day percentage drops since March 16 as investors reacted to renewed fears of a pandemic resurgence and digested dour economic forecasts from the U.S. Federal Reserve.
- Deaths of Americans from COVID-19 could reach 200,000 in September, a grim result of U.S.’ economic re-opening before getting growth of new cases down to a controllable level, as the cases of the disease have jumped in several U.S. states in recent days.
- Economic data appeared to back up the Fed’s gloomy economic projections, with jobless claims still more than double their peak during the Great Recession and continuing claims at an astoundingly high 20.9 million.
Market Views
- Stocks in Asia Pacific dropped in Friday morning trade after an overnight plunge on Wall Street amid fears of a second wave resurgence of the coronavirus pandemic. Hang Seng index plunged 278 points and Nikkei 225 index fell 341 points.
- Oil prices tumbled on renewed concerns about demand, as new cases of the coronavirus disease rise globally, and a large buildup of U.S. crude inventories. The international benchmark Brent crude futures down 2.75% to $37.49 per barrel while U.S. crude futures also slipped 3.55% to $35.05 per barrel.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,706
Target price:
Protective stop:
Outlook
There was a Bearish Harami reversal candlestick that was confirmed by a follow-through bearish candle on Thursday. There was a sharp correction last night and price is now testing at the strong support that formed by the 20EMA, Fibonacci 38% correction point and the gap support at 25,730. A violation of this support will hint at deeper correction towards 24,630. Stochastic is falling from the overbought region. MACD is bullish but a bearish crossover was seen.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long
Last : 24,223
Target price: 25,750
Protective stop: 24,800 reached
Outlook
Price struggled to stay above the upper end of the consolidation zone that ranged from 23,400 to 25,000 for the past five days and a long bearish candlestick has brought price falling back inside the consolidation zone. We are likely to see this index testing the lower end of the consolidation range at 23,400 again. Stochastic is turning down at the moment. MACD is bearish and a bearish crossover is likely.
Trading Idea
Buy at 25,100 for 25.750 with a stop below 24,800 was filled on 10 June
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9827
Target price :
Protective stop:
Outlook
This index has created a new intraday all-time high at 10,155 on Thursday after breaking out from the Rising Wedge chart pattern. However, price could be forming a bearish engulfing reversal pattern and we expect a correction to follow-through. The first support lies at the 20EMA at 9590. A violation of 9590 will hint for deeper correction at 8975. Stochastic is already in overbought extreme and is falling. MACD is still bullish but is flat at the moment.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation: Short
Last: 21,836
Target price: 22,010 reached
Protective stop: 23,350
Outlook
This index was resisted by the gap resistance that created on 24th Feb for the past few days, and a long bearish candlestick was seen today. It is now testing the 20EMA support at 21,900 and price could continue heading lower towards the key support at 20,440, the gap support that coincides with the Fibonacci 38% correction point. Stochastic is moving lower and there is a bearish MACD crossover.
Trading Idea
Sell 22,650 for 22,010 with a stop above 23,350 was filled on 21 June.
