- Stocks on Wall Street fell for a second straight day on Tuesday as a global spike in coronavirus cases hit travel-related shares and investors had second thoughts about big U.S. banks’ apparently stellar earnings last week.
- Investors piled into defensive sectors considered relatively safe during times of economic uncertainty, lifting real estate, utilities, consumer staples and healthcare as financials and energy shares fell hard. Some of the recent optimism about the leisure industry has waned as the reopening might take a bit longer than initially thought.
- The coronavirus situation in the India remains severe, with 259,170 new daily infections registered on Tuesday. The World Health Organization warned Friday that global Covid infection rate is approaching its highest level ever.
- Stocks in Asia-Pacific plunged in Wednesday morning trade as a surge in coronavirus cases in countries like India weighs on the economic outlook and investor sentiment. Hang Seng index plummeted 510 points and Nikkei 225 index plunged 638 points.
- The losses came after their counterparts tumbled overnight stateside. United Airlines shares plummeted more than 8% after the company reported a fifth consecutive quarterly loss and the CEO Scott Kirby said it is still unclear when international and business travel will recover.
Dow Jones Index
(CFD Symbol: US30)
Last : 33,780
Price formed a Bearish Harami reversal candlestick pattern after reaching a high of 34,253 last Friday. The 20EMA will be the first layer of support at 33,500. A violation of the 20EMA will hint for deeper correction towards 32,900. Both Stochastic and MACD have been giving divergence warning. Stochastic is at the overbought region and is falling now. MACD is still bullish but there is a bearish crossover.
Buy 33,300 for 34,000 with a stop below 32,890
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Short @ 29,200
Last : 28,650
Target price: 29,900
Protective stop: 28,650 Triggered
Price is still being capped by the falling trendline that formed since early March 2021 even though there is a false breakout occurred last Monday. It is trading below the falling 20EMA now. As long as price could not breakout above the trendline, we are likely to see price testing the low at 27,500 again. Stochastic is falling now. MACD is still bearish and a bearish crossover is likely.
Buy 29,200 for 29,900 with a stop below 28,650. Entry and stop orders were triggered on 21 Apr.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Long @ 13,900
Last : 13,744
Target price : 14,300
Protective stop: 13,650
This index has been moving lower after forming a high at 14,066. It is going to test the 20EMA support at 13,610. A violation of this 20EMA would hint for a deeper correction towards the resistance-turned-support level at 13,340. Stochastic is falling now but is still at the overbought region. MACD is bullish and there is a bearish crossover.
Buy 13,900 for 14,300 with a stop below 13,650. Entry order was filled on 20 Apr
S&P 500 Index
(CFD Symbol: US500)
Price is now having a pullback after hitting a high at 4191. It is going to test the first layer of support at 20EMA at 4080. A violation of the 20EMA would hint for deeper correction towards 4022. Stochastic is falling but is still at the overbought region and MACD is still bullish.
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