Market News
- All three major U.S. stock indexes were range-bound and oscillated through much of the day, but the S&P ended the session in the black along with the tech-heavy Nasdaq. The blue-chip Dow was the only one that lost ground; ending 39 points lower to 26,080.
- Cleveland Federal Reserve Bank President Loretta Mester said it could take a year or two for the U.S. economy to return to pre-pandemic levels, with the gross domestic product declining by 6% in 2020 and the unemployment rate still around 9% by year’s end.
- Trump on Thursday renewed his threat to cut ties with China, a day after his top diplomats held talks with Beijing and his trade representative said he did not consider decoupling the U.S. and Chinese economies a viable option.
Market Views
- Asian stocks were mixed in Friday morning although trade was likely to be choppy after a mixed Wall Street session with investor focus swinging between concerns about a second pandemic wave and more upbeat hopes about an economic recovery. Hang Seng index fell 13 points and Nikkei 225 index rose 36 points.
- A Chinese health expert said Thursday that a recent virus outbreak in Beijing is under control but the Chinese capital saw a jump in infections after more than 50 days without domestically transmitted Covid-19 cases, but he reinforced that under control doesn’t mean the number of cases will turn zero tomorrow or the day after.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 26,068
Target price:
Protective stop:
Outlook
The sharp correction was halted at the key Fibonacci 62% retracement point, which is also the gap resistance-turned-support zone. Price could be forming a potential pennant pattern, and we would like to see a pennant breakout for a test of its all-time high of 27,608. The support point of 24,560 is crucial, and if price breaks below this support, we could see this index forming lower highs and lower lows which is a hint for more downside. Stochastic could be turning up. MACD is also bullish at the moment.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,486
Target price:
Protective stop:
Outlook
Price has fallen inside the consolidation zone that ranged from 23,400 to 25,000 and we expect this index to move within this range, until either end of the range boundary is broken for the next directional move. The 20EMA is currently flat, suggesting that price is moving in sideways manner. Stochastic could be turning up. 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 : 10,017
Target price :
Protective stop:
Outlook
The three days’ price decline was halted when this index hit the 20EMA, where it had provided support to the price. A bullish engulfing pattern was formed on Monday, suggesting a potential bottom. We are likely to see this index tests its all-time high at 10,155. Stochastic could be turning up. 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: 3115
Target price:
Protective stop:
Outlook
This index was supported by the key resistance-turned-support zone at 2965. On Monday, it ended the day with a bullish Engulfing candlestick pattern which hints of a potential low. Price is currently hovering around the rising 20EMA. We could see this index moving higher towards its all-time high at 3232 again. Stochastic is turning up. MACD is still bullish at the moment but there is a bearish crossover.
Trading Idea
Buy 3080 for 3160 with a stop below 3040
