Market News
- Wall Street stocks rebounded on Tuesday, led by a jump in Amazon, even as a likely delay in new fiscal stimulus by Congress and an increase in the number of coronavirus cases dampened hopes of a faster US economic recovery. Dow Jones rose 140 points, while S&P 500 and Nasdaq gained 34 and 184 points.
- Fed Chair Jerome Powell on Tuesday told a congressional panel that the economy had shown “marked improvement” since the pandemic drove it into recession, but the path ahead remains uncertain and the U.S. central bank will do more if needed.
- Investors are now bracing for an extended period of market volatility on concerns over growing political uncertainty in Washington that has been sharpened by the death last week of Supreme Court Justice Ruth Bader Ginsburg. All the political energies are going to be directed towards the next Supreme Court nomination
Market Views
- Stocks in Asia-Pacific were lower on Wednesday morning trade after the overnight Wall Street’s gains that pushed by tech stocks, although focus is shifting to renewed U.S.-Sino tensions which could weigh on investor sentiment. Hang Seng index slid 28 points and Nikkei 225 index slipped 139 points.
- On Tuesday, U.S. President Trump told the United Nations General Assembly that China must be held accountable for having “unleashed” COVID-19 on the world, prompting Beijing to accuse him of “lies” and abusing the U.N. platform to provoke confrontation. President Xi also announced plans to boost his country’s Paris climate accord and called for a green revolution.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long
Last : 27,366
Target price: 28,035
Protective stop: 27,330 Triggered
Outlook
There is a price resistance of 28,370 that capped the price’s rally. This index has violated its previous low of 27,199 and is testing the Fibonacci 50% correction point at 26,880. If price was to be capped by the falling 20EMA at 27,777, we are likely to see price moving lower as price is forming lower lows and lower highs. Stochastic is near to the oversold region, suggesting for potential rebound. MACD has turned bearish with both of its lines are below the zero line.
Trading Idea
Buy 27,575 for 28,035 with a stop below 27,330. Order was filled on 18 Sep 2020. Stop was triggered on 21 Sep.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long
Last : 23,745
Target price: 24,700
Protective stop: 24,150 Triggered
Outlook
Price breached its previous low of 24,246 with a long bearish candle on Monday. The outlook of this index is negative as price is forming lower highs and lower lows. The 20EMA is falling and is acting as resistance to the price. The next support lies at 23,180. Stochastic is still weak and is falling now. MACD has turned bearish and is still declining.
Trading Idea
Buy 24,300 for 24,700 with a stop below 24,150. Order was filled on 21 Sep 202. Stop was triggered on 21 Sep.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 11,128
Target price :
Protective stop:
Outlook
Price managed to climb back above the resistance-turned-support zone at around 11,070. As long as it able to stay above this zone, there is chance for this index to move higher if it surpass the 20EMA resistance at 11,300. Stochastic is at the oversold region and could turn up, hinting at potential rebound ahead. MACD has turned bearish but a bullish crossover is likely.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3309
Target price:
Protective stop:
Outlook
Price was capped by the falling 20EMA resistance and is now testing the Fibonacci 50% correction point at 3262. If price unable to surpass the 20EMA at 3367, there is high chance that price will continue falling towards 3185. Stochastic is still weak and could be turning down again, hinting of a potential downside ahead. MACD is still bullish but the fast line has moved below the zero line.
Trading Idea
Wait for better trading idea
