Market News
- U.S. stocks ended higher on Friday, but the day’s trading was marked by wild swings, with the S&P 500 up about 3% at its high of the session and down about 0.6% at the low, as bargain hunters stepped back into the market following sharp losses a day earlier. All three major indexes suffered their biggest weekly percentage declines since March still.
- Beijing was in a “wartime emergency” after it recorded dozens of new COVID-19 cases in recent days, all linked to a major wholesale food market. Authorities have closed the centre and locked down nearby housing districts.
- Stateside, Texas and North Carolina in U.S. also reported a record number of virus-related hospitalizations on Saturday. As new coronavirus cases resurfaced in China U.S., worries about a second wave have deepened, prompting fears about prolonged damage to the economy.
Market Views
- Stocks in Asia Pacific stumbled on Monday morning as fears of a second wave of coronavirus infections in Beijing sent investors scurrying for safe-havens while underwhelming data from China further weighed on sentiment. Hang Seng index slid 143 points and Nikkei 225 index fell 134 points.
- Oil fell more than 2% on Monday, extending losses from last week, as new coronavirus infections hit China and the United States, raising the prospect that renewed outbreaks of the virus could weigh on the recovery of fuel demand.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,195
Target price:
Protective stop:
Outlook
There was a sharp correction on Thursday after a Bearish Harami reversal candlestick was identified. This index broke below the strong support that was formed by the 20EMA, Fibonacci 38% correction point and the gap support at 25,730. The 20EMA is now falling at the moment, and we are likely to see this index testing 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 :
Last : 24,170
Target price:
Protective stop:
Outlook
Price struggled to stay above the upper end of the consolidation zone that ranged from 23,400 to 25,000, and has moved inside the consolidation zone. It broke below the 20EMA support as well, and 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 was seen.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9564
Target price :
Protective stop:
Outlook
This index created a new intraday all-time high at 10,155 last Friday, but there was a Bearish Engulfing follow-through the next day, confirming the reversal pattern. Price broke below the 20EMA support, and we are likely to see a deeper correction towards 9000 or 8806 since there was a prolonged divergence warnings given from both the Stochastic and MACD. Stochastic is falling at the moment. MACD is still bullish but a bearish crossover was seen.
Trading Idea
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 2995
Target price:
Protective stop:
Outlook
This index was declining after the Bearish Harami reversal candlestick was confirmed on Wednesday. It broke below the 20EMA, and the 20EMA is falling at the moment. The first support lies at the gap resistance-turned-support zone at 2965. A violation of 2965 will bring price lower towards 2830. Stochastic is falling at the moment. MACD is still bullish at the moment but there is a bearish crossover.
Trading Idea
Wait for better trading idea.
