- U.S. stocks rallied on Friday, driving the S&P 500 to a near-record closing high, after factory data and new home sales underscored a booming economy while megacap stocks rose in anticipation of strong earnings reports next week.
- Strong recent data meant bonds were sold off, though 10-year U.S. Treasury yields were not far from a recent six-week low on expectations the U.S. Federal Reserve will stay accommodative at its meeting this week.
- Some economists say the market could hit a soft patch in coming months reflecting concerns ranging from rising COVID-19 cases and worries that most of the benefits from massive fiscal stimulus have already been priced in.
- Asian stocks rose on Monday morning with Chinese shares near three-week highs as signs the world economic recovery was well on track bolstered risk appetite, while the U.S. dollar slipped to a two-month low. Hang Seng index rose 65 points and Nikkei 225 index gained 74 points.
- The Biden administration has said it will immediately make raw materials needed for India’s coronavirus vaccine production available. The U.S. response comes after Britain, France and Germany also pledged aid to India over the weekend.
Dow Jones Index
(CFD Symbol: US30)
Last : 34,080
Price is consolidating after hitting a high at 34,253 on 16 Apr. The 20EMA will be the first layer of support at 33,650. We look forward for price surpassing its recent high for more upside towards 35,600. Stochastic is still strong at the moment and a bullish crossover is likely. MACD also remains strong at the moment.
Buy 33,655 for 34,000 with a stop below 33,500
Hang Seng Index
(CFD Symbol: HK50)
Last : 29,083
Price has broken out from the falling trendline that formed since early March 2021. It has to surpass its recent high of 29,337 for the first resistance at 29,880. The 20EMA is now rising and is acting as support at 28,830. Stochastic is still strong now. MACD has turned bullish and it is moving higher.
Buy 28,900 for 29,550 with a stop below 28,690.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Long @ 13,900
Last : 13,944
Target price : 14,300
Protective stop: 13,650
There is a slight pullback where the 20EMA is acting as support at the moment at 13,700. With the strong Stochastic and the bullish MACD indicators, we are likely to see price breaking above its recent high of 14,066 for 14,480. Stochastic is still strong now and MACD is still bullish.
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 currently consolidating where the rising 20EMA is acting as first layer of support at 4107. It has to surpass its recent high of 4194 for more upside towards 4350. Stochastic is still strong now and MACD remains bullish.
Wait for better trading idea