Market News
- The three main Wall Street indexes ended Friday higher for the day and week, with the S&P 500 and the Dow breaking closing records, as investors took strong economic data and bank earnings as signs of momentum in the U.S. pandemic recovery.
- Reporting a 150% jump in quarterly profit on Friday, Morgan Stanley joined other big U.S. banks in posting first-quarter numbers reinforcing hopes of a swift economic recovery. Still, the investment bank’s shares fell 2.8% as it also disclosed an almost $1 billion loss from the collapse of private fund Archegos.
- The Fed’s pledge to keep interest rates low despite higher inflation has also revived demand for richly valued technology stocks, although bond yields edged higher again on Friday after hitting multi-week lows a day earlier.
Market Views
- Asian shares were higher on Monday morning helped by expectations monetary policy will remain accommodative the world over, while COVID-19 vaccine rollouts help ease fears of another dangerous wave of coronavirus infections. Hang Seng index rose 250 points and Nikkei 225 index was up 63 points.
- Investors will keep their eyes peeled for earnings from IBM and Coca-Cola later in the day. Netflix reports on Tuesday while later in the week American Airlines and Southwest will be the first major post-COVID cyclicals to post results.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 34,095
Target price:
Protective stop:
Outlook
Price has penetrated above the Fibonacci 200% projection level after breaking out from the consolidation zone. The next resistance lies at 34,360. The 20EMA is acting as support at 33,450. Do watch out for the reversal candlestick pattern as there is divergence warning given from both Stochastic and MACD. Stochastic is at the overbought region now but MACD is still bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 29,279
Target price:
Protective stop:
Outlook
This index has finally broken out from the falling trendline that formed since early March 2021. The 20EMA is rising now and is acting as support at 28,870. As long as price stay above the trendline, we could see price moving higher towards 29,930. Stochastic is rising now but MACD is still bearish.
Trading Idea
Buy 29,200 for 29,900 with a stop below 28,650.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 14,052
Target price :
Protective stop:
Outlook
This index has continued its upward strength and has broken above its overhead resistance at 13,908. As long as price can stay above 13,908, there is still a chance for price moving higher. The 20EMA is still rising and is acting as support at 13,600. Stochastic is still rising now and is at the overbought region. MACD has turned bullish.
Trading Idea
Buy 13,900 for 14,300 with a stop below 13,650
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4177
Target price:
Protective stop:
Outlook
Price has been rising along with the rising 20EMA which is acting as support at 4070. This index has created a new all-time high at 4191. The next resistance lies at 4206. Stochastic is rising at the overbought region now and MACD is still bullish.
Trading Idea
Wait for better trading idea
