- Wall Street ended lower on Friday, with Amazon, Apple, Google-parent Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports. Despite Friday’s weakness, the Nasdaq completed its sixth consecutive month of gains, rising 5.4% in April.
- Data on Friday showed U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government. Manufacturing PMI data for April will be released at 9:45 a.m. ET on Monday, followed by ISM manufacturing at 10 a.m.
- Investors will continue monitoring the COVID situation in India as the country continues to battle a deadly second wave of infections. Over the weekend, more than 400,000 daily new cases were registered for the first time.
- Stocks in Asia-Pacific were lower in Monday morning, with thinner trading volumes expected as major markets in China, Thailand and Japan are closed for holidays today. Hang Seng index slumped 433 points.
- Oil prices climbed on Monday as optimism about a strong rebound in fuel demand in developed countries and China in the second half of the year overshadowed growing concerns of a full lockdown in India to curb the COVID-19 pandemic.
Dow Jones Index
(CFD Symbol: US30)
Last : 33,992
Price is currently consolidating within a triangle pattern after hitting a high at 34,253 on 16 Apr. The 20EMA will be the first layer of support at 33,760. We look forward for price breaking out from the triangle to continue its upward momentum. Stochastic is falling at the moment but MACD remains strong now.
Buy at 33,760 for 34,250 with a stop below 33,500.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 28,900
Last : 28,235
Target price: 29,550
Protective stop: 28,690 Triggered
Price was resisted by the price resistance at 29,180. It has formed a reversal candlestick pattern of Evening Doji Star, and there is a follow-through bearish candlestick. We could see price testing its low at 27,500 again. Stochastic is falling now. MACD has turned bearish and there is a bearish crossover
Buy 28,900 for 29,550 with a stop below 28,690. Entry order was filled on 27 Apr. Stop was triggered on 30 Apr.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Long @ 13,900
Last : 13,886
Target price : 14,300
Protective stop: 13,650
This index is now consolidating where the 20EMA is acting as support at the moment at 13,790. It has to surpass its recent high of 14,076 for more upside ahead. A violation of the 20EMA is likely to bring price lower. Stochastic is falling now and is giving potential divergence warning. 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 hit the Fibonacci 200% projection level and a new high was created at 4218 on 29 April. The 20EMA is rising and is acting as first layer of support at 4140. Stochastic is still at the overbought region now and there is a bearish crossover. MACD remains bullish. Do watch out for reversal candlestick pattern as there is potential divergence warning given from the Stochastic.
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