Market News
- Last Friday, Dow Jones plunged 730 points, while the other two of the Wall Street’s major indexes tumbled more than 2% as several U.S. states imposed business restrictions in response to a surge in coronavirus cases. Facebook was one of the big draggers; shedding 8.3% after the advertising boycott that called out the social media giant for not doing enough to stop hate speech on its platforms.
- Among sectors, financial, communication services and energy shares outpaced the broader S&P 500 in declines. S&P 500 bank shares plummeted 6.1% after the Federal Reserve limited dividend payments and barred share repurchases until at least the fourth quarter following its annual stress test.
- A Wall Street Journal report that the Phase 1 Sino-U.S. trade deal could be at risk placed additional pressure on U.S. stocks. According to that report, Chinese officials warned that “meddling” in Hong Kong and Taiwan could lead Beijing to back away from its commitment to purchase U.S. farm goods.
Market Views
- Asian share markets began the week with a cautious tone on Monday morning as the relentless spread of the coronavirus finally made investors question their optimism on the global economy, benefiting safe harbour bonds and the U.S. dollar. Hang Seng index slid 239 points and Nikkei 225 index fell 297 points.
- Oil prices fell for a second straight session on Monday as coronavirus cases rose in the United States and other places, leading countries to resume partial lockdowns that could hurt fuel demand.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 25,072
Target price:
Protective stop:
Outlook
This index has been falling since 17 Jun and is now going to test the key support at previous low at 24,560. This low also coincided with the Fibonacci 62% correction point. Watch out for the price reaction at this level. A break of this low would hint for more downside at 22,790 as price could be forming lower highs and lower lows. 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 : 24,354
Target price:
Protective stop:
Outlook
Last Wednesday, a bearish Engulfing candlestick price pattern 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
Sell 24,570 for 23,730 with stop above 24,850
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 9862
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 9860. The next support lies at 8905. There is divergence warning given from both Stochastic and MACD. There is a bearish Stochastic crossover. MACD is still bullish but there was a bearish crossover.
Trading Idea
Sell 9890 for 9630 with a stop above 9960.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:Long
Last: 22,486
Target price:23,100
Protective stop:22,170 triggered
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 22,230. A close below the 20EMA is likely to target the Fibonacci 38% correction point at 20,310. Stochastic is weak but is still moving higher. MACD is bullish but there was a bearish crossover.
Trading Idea
Buy 22,430 for 23,100 with a stop below 22,170. Position was stop out on 26 June.
