- Wall Street closed lower on Friday, heading into the weekend with a broad sell-off due to weak earnings, surging coronavirus cases and geopolitical uncertainties. Dow Jones slid 182 points, S&P 500 was down 20 points and Nasdaq Composite fell 98 points.
- For the second day in a row, the tech sector weighed heaviest on all three major U.S. stock averages. Intel was the biggest drag that led the decline; its shares plunging 16.2% after the chipmaker reported a delay in production of a smaller, faster 7-nonometer chip.
- More than 1,000 Americans died from COVID-19 on Thursday, the third straight day for that grim milestone as total cases surged past 4 million. Beijing fired back at Washington for shuttering China’s Houston consulate by closing the U.S. consulate in the city of Chengdu.
- Markets in Asia Pacific were mixed in early Monday to start off a week as tit-for-tat consulate closures in China and U.S. fanned worries about worsening diplomatic ties between the world’s two largest economies. Hang Seng index rose 75 points while Nikkei 225 index slid 122 points.
- Oil prices edged down on Monday as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets such as Gold, which is near to its record high of $1,920.4 touched in September 2011.
Dow Jones Index
(CFD Symbol: US30)
Last : 26,588
This index could be forming a potential Double Top reversal pattern, and a bearish Engulfing candlestick pattern was seen last Thursday. It is now sitting at the 20EMA support at 26,390. We would like to see a rebound from here to retest its previous high. A move below the 20EMA would confirm the reversal and could target for 25,710, the Double Top target. Stochastic is turning down at the moment. MACD is still bullish at the moment but there is a bearish crossover.
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Hang Seng Index
(CFD Symbol: HK50)
Last : 24,791
This index is now hovering at the edge of the key blue consolidation zone, which is also the Fibonacci 50% correction point. A violation of this support would bring price lower towards 24,180. The 20EMA is falling at the moment, which could suggest more downside. Stochastic is still moving lower buy MACD is still bullish
Sell 24,950 with a stop above 25,250 for 24,180.
Nasdaq 100 Index
(CFD Symbol: USTec)
Recommendation : Long
Last : 10,525
Target price : 11,050
Protective stop: 10,350 triggered
Last Tuesday, price hit exactly 11,071, which was the previous all-time high, and has been moving lower since then. It is currently hovering around the 20EMA support at 10,540. If price can sustain at the 20EMA, we are likely to see price testing its high again. There is divergence warning given from both the Stochastic and MACD. Stochastic is moving lower at the moment but MACD is still bullish at the moment.
Buy at 10,650 for 11,050 with a stop below 10,350 was filled on 23 July 2020. Stop was triggered on 24 July.
S&P 500 Index
(CFD Symbol: US500)
On Thursday, this index closed with a bearish engulfing reversal candlestick pattern. The immediate target lies at the 20EMA support at 3190. A violation of the 20EMA would hint for more downside. There is a divergence warning given from the MACD. Stochastic is moving lower at the moment. MACD is still bullish but just had a bearish crossover.
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