Market News
- Dow Jones plunged 710 points on Wednesday, suffered their biggest daily percentage drop in almost two weeks as a surge in U.S. coronavirus cases intensified fears of another round of government lockdowns and worsening economic damage. S&P 500 and Nasdaq fell more than 2.5% as well.
- U.S. has recorded the second-largest rise in infections since the health crisis began, with a flare-up of cases in states where restrictions meant to contain the disease were lifted early. The governors of New York, New Jersey and Connecticut announced that visitors from states with high coronavirus infection rates must self-quarantine for 14 days on arrival.
- The pandemic appeared to be causing wider and deeper damage to economic activity than first thought. The IMF said it now expects global output to shrink by 4.9%, compared with a 3.0% contraction predicted in April. Advanced economies have been particularly hard hit, with U.S. output now expected to shrink 8.0%, more than two percentage points worse than the April forecast.
Market Views
- Asia markets slipped on Thursday morning as surging U.S. coronavirus cases, global trade tensions and an International Monetary Fund downgrade to economic projections knocked confidence in a recovery. Nikkei 225 index fell 299 points while Hong Kong is closed for a holiday today.
- Oil prices, a proxy for global energy consumption and economic growth, nursed losses following a 5% tumble overnight as U.S. crude storage hit another record and demand worries resurfaced.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,392
Target price:
Protective stop:
Outlook
This index could be consolidating within a Flag pattern, and is now testing its gap support zone at 25,200. If price is unable to sustain at this support, we are likely to see a test of 24,630 again. A lower downside target would be expected if 24,630 support is violated. Stochastic is still moving lower at the moment. MACD is bullish but there was a bearish crossover.
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,528
Target price:
Protective stop:
Outlook
A bearish engulfing was formed at the upper boundary of the consolidation zone that ranged from 23,400 to 25,000. We expect this index to continue to move within this consolidation range and a test of the low of range boundary at 23,400 is likely. Stochastic is still moving lower at the moment. MACD is bullish but a bullish crossover was not seen yet.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9998
Target price :
Protective stop:
Outlook
This index recorded a new all-time high of 10,308 on Tuesday, but ended the day with a spinning top candlestick pattern. A bearish engulfing pattern was followed-through last night. We could be at the swing top, and a correction is expected if price breaks below the 20EMA support at 9848. The next support lies at 8905. There is divergence warning given from both Stochastic and MACD. A bearish Stochastic crossover is likely. MACD is still bullish but there was a bearish crossover.
Trading Idea
Wait for better trading idea
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 22,301
Target price:
Protective stop:
Outlook
This index was capped at the gap resistance zone at 23,318. It has been moving lower since then, and price is now hovering around the 20EMA support at 22,200. A violation of the 20EMA is likely to target the Fibonacci 38% correction point at 20,310. Stochastic is weak and could be turning down. MACD is bullish but there was a bearish crossover.
Trading Idea
Wait for better trading idea
