Market News
- Shares on Wall Street ended higher on Thursday in choppy trading, as investors cheered the prospect of more fiscal stimulus to support a pandemic-damaged U.S. economy, with more data pointing to a slowing labour market recovery.
- U.S. House of Representatives Speaker Nancy Pelosi reported progress in talks with the Trump administration for another round of financial aid and said legislation could be hammered out “pretty soon”. However, White House economic adviser Larry Kudlow cautioned “significant policy differences” remained, which were unlikely to be resolved before the Nov. 3 election.
- United States was also on the brink of a widespread coronavirus outbreak, with nearly two-thirds of states in a danger zone with six reporting record one-day increases in COVID-19 deaths on Wednesday.
Market Views
- Asian stocks were set for cautious gains on Friday morning after positive U.S. economic data and signs of progress in stimulus talks in Washington lifted Wall Street benchmarks. Hang Seng index rose 8 points and Nikkei 225 index gained 43 points.
- Oil prices also ended higher, boosted by stimulus hopes, but did not fully recover from the prior session’s losses stemming from signs of deteriorating demand.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,343
Target price:
Protective stop:
Outlook
This index could be moving within a rising channel that was formed since Jun 20. Price is now sitting and rebounding from the 20EMA, which is acting as support at the moment. A Bullish Engulfing was formed last night, which could be a hint of a price rally ahead. Price is likely to move higher towards 28,930. Stochastic is still strong at the moment. MACD is also bullish.
Trading Idea
Buy 28,230 for 28,680 with a stop below 27,980.
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 24,825
Target price:
Protective stop:
Outlook
Price rebounded from the resistance-turned-support zone with a Harami candlestick pattern last Friday. The 20EMA is rising and is moving higher, hinting of a bullish trend ahead. It is now testing the overhead Fibonacci 62% correction point of the Aug-Sept’s decline. It has to surpass this resistance for further upside. Stochastic is rising now and is at the overbought zone. MACD has turned bullish.
Trading Idea
Buy 24,800 for 25,250 with a stop below 24,530.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation : Long
Last : 11,671
Target price : 12,000
Protective stop: 11,450
Outlook
Price has been correcting and is now sitting at the 20EMA support, which coincides with the Fibonacci 38% correction point of Sep-Oct’s rally. This support is also the gap resistance-turned-support zone. The 20EMA is still rising, suggesting a bullish trend now. Look for price to resume its upward momentum towards 12,467 if this index can hold above the 20EMA. Stochastic could be turning up again. MACD has turned bullish
Trading Idea
Buy 11,650 for 12,000 with a stop below 11,450. Order was filled on 19 Oct.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Long
Last: 3460
Target price: 3550
Protective stop: 3415 Triggered
Outlook
Price appears to rebound from the 20EMA, which is acting as support at the moment. The 20EMA is also coinciding with the Fibonacci 38% correction point of Sep-Oct 20’s rally. As long as price stays above the 20EMA at 3431, we are likely to see price moving higher towards 3588. Stochastic is falling now. MACD has turned bullish
Trading Idea
Buy 3470 for 3550 with a stop below 3415. Order was filled on 19 Oct. Stop was triggered on 22 Oct.
