Market News
- U.S. stocks tumbled on Tuesday, with the Nasdaq closing at its lowest since December 2020 as investors worried about slowing global growth and a more aggressive Fed. Tesla was the biggest drag, losing 12% after investors worried that chief executive Elon Musk might sell some of his stake in the electric car maker to help pay for his $44 billion deal to buy Twitter.
- China’s COVID-19 led lockdown and an aggressive pivot by major central banks to fight inflation have overshadowed what has been a better-than-expected quarterly earnings season so far.
- Data showed U.S. consumer confidence edged lower in April, though households planned to buy automobiles and many appliances, which should help underpin consumer spending in the second quarter.
Market Views
- Asia Pacific stocks were mixed on Wednesday morning, as a combination of mixed corporate earnings, the latest COVID-19 outbreak in China, and the prospect of aggressive Fed monetary policy all indicated a deteriorating economic outlook and dampened investor sentiment. Hang Seng index rose 20 points while Nikkei 225 index dropped 501 points.
- Concerns are also growing that Russia could halt gas flows to Europe and impact the continent’s economic growth. It will follow through on its threat to halt flows to countries that refuse to pay for the fuel in Russian roubles by cutting off supplies to Poland and Bulgaria on Wednesday.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,467
Target price:
Protective stop:
Outlook
Price has been on a decline after breaking below the neckline of the Double Top chart pattern. It has to break above the neckline and 20EMA for reversal. Else, we see price falling towards its previous low support zone at 32,340. Stochastic is falling and MACD is bearish.
Trading Idea
Sell 34,100 for 32,600 with a stop above 34,500.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,965
Target price:
Protective stop:
Outlook
Price continued to fall with no sign of recovery as yet. The 20EMA is falling, confirming the downtrend. Stochastic is at the oversold region and MACD is bearish. A corrective rally towards 20EMA is possible if price shows reversal sign.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,069
Target price:
Protective stop:
Outlook
Price has been on a decline after violating the 20EMA support. This index is currently trading at its previous low support zone. Stochastic is at the oversold region and MACD histogram is showing sign of divergence warning. A corrective rally towards the 20EMA is likely if price shows sign of reversal.
Trading Idea
Buy 13,950 for 14,500 with a stop below 13,700. Entry and Stop was filled on 21 April.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4197
Target price:
Protective stop:
Outlook
This index is currently trading at its previous low support zone. We could see a possible corrective rally towards the 20EMA if there is sign of reversal pattern. Stochastic is at the oversold region but MACD is bearish.
Trading Idea
Buy 4140 with a stop below 4090 for target at 4290.
