Market News
- Dow Jones and S&P 500 ended lower on Thursday, dragged down by Walt Disney Co as it lost subscribers, while PacWest led declines in regional banks after posting a drop in deposits. Nasdaq Composite posted a gain of 0.18% as Alphabet shares gained near their highest level since August.
- U.S. Federal Deposit Insurance Corporation said around 113 of the country’s largest lenders will bear the cost of replenishing the $16 billion in coverage the agency has forked out for the crisis. The standoff in Washington over raising the U.S. debt ceiling will also be monitoring closely by investors.
- The European Union will see moderate growth despite persistent core inflation, as long as fiscal policy does not fuel inflation, European Commissioner for the Economy said. He added that he expects the euro zone to see “moderate growth, not recession.”
Market Views
- Asia-Pacific markets are trading mixed on Friday moring after the U.S. posted more data that showed inflation was easing. Hang Seng index fell 14 points while Nikkei 225 index gained 241 points.
- New Zealand’s manufacturing sector continued to see contraction in activity during April, with the reading slightly higher than seen in the previous month, government data showed. The country’s manufacturing purchasing managers index came in at 49.1, one point above March’s figure of 48.1.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 33,580
Last: 33,338
Target price: 34,200
Protective stop: 33,360 triggered
Outlook
Price is currently supported by its previous low support zone, coinciding with the Fibonacci 38% correction point. As long as this support holds, price could move higher to 34,000. A violation of this support will hint for further downside at 32,460.
Trading Idea
Buy 33,580 for 34,200 with a stop below 33,360. Entry and stop loss orders are filled on 10 May.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Sell @ 20,230
Last: 19,719
Target price: 19,210
Protective stop: 20,000
Outlook
This index is still moving within a potential bear flag continuation pattern. We would like to see a break of the lower trendline support to confirm the bear flag with a target price of 18,800. Stochastic is turning down and MACD remains bearish.
Trading Idea.
Sell 20,230 for 19,210 with a stop above 20,300. Entry was filled on 5 May. Shifted stop lower to 20,000.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,425
Target price:
Protective stop:
Outlook
Price broke out the rising channel two days ago with a bullish candle after being supported by the rising 20EMA. As long as price stay above the channel, we see price moving higher to 13,510. Stochastic is at the overbought zone and MACD remains bullish.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7750
Target price:
Protective stop:
Outlook
Price was resisted by its overhead 20MA resistance point. As long as it moves below the 20MA, we are likely to see price testing 7564. Stochastic is near to the oversold zone. MACD remains bearish at the moment.
Trading Idea
Wait for better trading idea.
