Market News
- Wall Street’s main indexes closed higher in choppy trading on Thursday, with bank stocks provided one of the biggest boosts, soaring ahead of annual stress test results and helping to offset investor jitters over alarming increases in new coronavirus cases.
- After a mixed bag of U.S. data overnight, with a smaller-than-expected drop in jobless claims but robust rise in goods orders, markets are looking for reassurance from European confidence surveys and U.S. spending data due later on Friday.
- The Federal Reserve on Thursday placed new restrictions on the banking industry after its annual stress test found that several banks could get close to minimum capital levels in scenarios related to the coronavirus pandemic. As a result, banks have to suspend share buyback programs and leave dividend payments at current levels for the third quarter.
Market Views
- Stocks in Asia Pacific were mixed on Friday morning and are set to end a choppy week more or less where they began it as surging coronavirus infections cast a shadow over encouraging economic data and checked hopes for a swift global recovery. Hang Seng index fell 108 points while Nikkei 225 index rose 214 points.
- Investor reaction to the ongoing coronavirus situation in the U.S. will continue to be watched on Friday, after the country suffered its single-biggest daily coronavirus cases surge on record. The burden on healthcare systems may force city or state governments to pause reopening of their economies or reimpose city-or state-wide lockdowns.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,646
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 support at 24,630 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 : 24,720
Target price:
Protective stop:
Outlook
Yesterday, 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 : 10,104
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: 22,486
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 22,250. 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
Buy 22,430 for 23,100 with a stop below 22,170.
