CFD Indices – US Market Declined On Higher Weekly Jobless Claims

Market News

  • Stocks on Wall Street opened lower, but closed with a rebound from early lows, on the heels of weekly initial jobless claims data that spiked by 137,000 to a seasonally adjusted 853,000, well above expectations for 725,000 and the highest level since mid-September, underscoring the need for fresh stimulus measures to support a flagging economy.
  • Few signs of progress towards a coronavirus relief package emerged as negotiations dragged on. While lawmakers seek to pass a bill before lifelines expire at the end of 2020, disagreement over state and local stimulus, unemployment assistance and stimulus checks still exist.
  • Post-Brexit trade talks between U.K. and European Union remain at an impasse over several notable issues including fishing rights and competition rules. EU Commission President Ursula Von der Leyen described the two sides as “far apart, but Prime Minister Boris Johnson said there was a “strong possibility” the nation could split from the EU with a trade agreement.

Market Views

  • Asian markets were mixed on Friday morning as concerns about U.S. stimulus and climbing COVID-19 cases weighed globally on optimism. Hang Seng index rose 141 points while Nikkei 225 index declined 138 points.
  • Oil prices climbed nearly 3%, with Brent hitting levels not seen since early March, on hopes of a speedier recovery thanks to COVID-19 vaccines. Brent crude rose 2.8%, and U.S. West Texas Intermediate (WTI) crude rose 2.8%.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation : Long @ 30,150
Last : 30,011
Target price: 30,500
Protective stop: 29,850

This index has been moving higher steadily along with the rising 20EMA, after breaking above the resistance high at 29,195. We could see price continuing its upward momentum for further upside towards 31,120, as long as it stays above the 20EMA at 29,720. Stochastic is still strong but just had a bearish crossover. MACD remains bullish at the moment.

Trading Idea
Buy 30,150 for 30,500 with a stop below 29,850. Entry order was filled on 10 Dec

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,501
Target price:
Protective stop:

This index is still moving within a consolidation range. It is being resisted at 27,070 for the fifth times, and it will need to break above this resistance for more upside. Price is fluctuating around the 20EMA at the moment, but as long as it can stay above the lower boundary of 25,900, it will continue ranging. A violation of 25,900 would see downside at 25,150. Stochastic is falling. MACD is still bullish but there is a bearish crossover.

Trading Idea
Wait for better trading idea.

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation : Long @ 12,510
Last : 12,368
Target price : 12,800
Protective stop: 12,400 Triggered

This index has created an all-time high at 12,673 on 9 Dec, but ended the day with a big Bearish Engulfing candlestick pattern. It is now testing the 20EMA at 12,260 and if this support fails, we could see price moving lower towards 11,810. Stochastic is falling at the moment. MACD is still bullish but there is a bearish crossover.

Trading Idea
Buy 12,510 for 12,800 with a stop below 12,400. Stop was triggered on10 Dec.

Australian 200 Index
(CFD Symbol: AUS200)
Last: 6635
Target price:
Protective stop:

Price could have formed a potential Double Top chart pattern. It is crucial to watch for the support at 6504. If this index violates this support, the Double Top reversal pattern will be confirmed and we could see price falling towards 6260 by using the Double Top projection method. There is divergence warning given from both the Stochastic and MACD. A bearish Stochastic crossover is likely although the MACD is still bullish.

Trading Idea
Wait for better trading idea

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