- Last Friday, Wall Street’s main indexes finished lower, weighed down by big U.S. banks such as Wells Fargo, JPMorgan and Citigroup after their earnings reports, while the energy sector fell sharply due to a regulatory probe into Exxon Mobil.
- Exxon shares plunged 7.8% after a report said that the U.S. Securities and Exchange Commission launched an investigation of the oil major, following a whistleblower’s complaint that it overvalued a key asset in the prolific Permian shale oil basin.
- A big burst of federal aid for U.S. states and local governments in Democratic President-elect Joe Biden’s massive fiscal stimulus plan helped higher-yielding debt from lower-rated issuers in the U.S. municipal bond market.
- Asian markets were mixed on Monday morning as data confirmed China’s economy had bounced back last quarter as factory output jumped, helping offset recent disappointing news on U.S. consumer spending. Hang Seng index gained 155 points while Nikkei 225 index fell 236 points.
- The pick-up in China was a marked contrast to the U.S. and Europe, where the spread of coronavirus has scarred consumer spending, underlined by dismal U.S. retail sales reported on Friday.
Dow Jones Index
(CFD Symbol: US30)
Last : 30,782
This index has fallen back inside the ascending channel last Friday. It is now testing the 20EMA support at 30,630. Once the 20EMA is violated, we are likely to see price moving towards the lower boundary of the channel support at 29,870. Stochastic is still strong as it has been trading at the overbought region for an extended period. MACD remains bullish but there is a bearish crossover. There is also MACD divergence warning.
Sell 30,950 for 30,350 with a stop above 31,290.
Hang Seng Index
(CFD Symbol: HK50)
Last : 28,698
This index penetrated above its previous resistance high of 28,067 last Wednesday after breaking out from the descending channel on 29 Dec 20. The 20EMA is still rising and is providing support at 27,600. It is going to test our target price zone of 28,990-29,120 soon. Stochastic is at the overbought zone while the MACD is bullish and is moving higher.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 12,767
Target price :
This index created a new all-time high at 13,134 on 8 Jan. Price has slightly violated the 20EMA support at 12,790. The 20EMA could also turn bearish. With the divergence warning given from both the Stochastic and MACD, we could see price moving lower towards 12,300. Stochastic is falling now. MACD is still bullish but there is a bearish crossover.
Sell 12,850 with a stop above 13,100 for 12,400.
Australian 200 Index
(CFD Symbol: AUS200)
This index is now consolidating within the Triangle chart pattern. It is likely to test the lower boundary of the Triangle at 6580. The 20EMA is also flat, confirming the sideway now. Stochastic is falling now. MACD is still bullish but both lines are near to the zero line, and there is also divergence warning given from the MACD that warn for potential reversal. A Triangle breakdown would hint for a deeper downward movement.
Wait for better trading idea