Category: CFD Indices

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.

Market News

• U.S. stock indexes closed lower on Tuesday as investors grew more cautious ahead of a U.S. consumer price index report and a meeting between U.S. political leaders to discuss the debt ceiling. Dow Jones fell 56 points, S&P 500 was down 18 points while Nasdaq Composite remained unchanged.

• Talks over the U.S. debt ceiling are adding to caution in the market as traders were also waiting for an update on plans for the debt ceiling from a meeting between U.S. President Joe Biden, Republican House Speaker Kevin McCarthy and other congressional leaders at the White House.

• The reading is expected to show that inflation eased further in April, but remained well above the Federal Reserve’s 2% annual target, which could invite more hawkish measures from the central bank.

Market Views

• Asian stocks sank on Wednesday as markets hunkered down before key U.S. consumer inflation data due later in the day, with Chinese bourses down for a second straight session after disappointing trade readings. Hang Seng index fell 143 points and Nikkei 225 index dropped 149 points.

• Chinese exports grew at a slower pace from the prior month, pointing to continued pressure on the country’s massive manufacturing sector. A swathe of weak economic data has seen traders question the breadth of a Chinese economic recovery this year, as the country reemerges from three years of anti-COVID measures.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,583

Target price:

Protective stop:

Outlook
Price rebounded with a bullish candle from the Fibonacci 38% correction point. The movements of the past two days were small, but price managed to stay above the 20MA. Both Stochastic and MACD are rising. We could see price rebounding from the 20MA to 34,250 if it able to stay above the 20MA.

Trading Idea
Buy 33,580 for 34,200 with a stop below 33,360.

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation: Sell @ 20,230

Last: 19,783

Target price: 19,210

Protective stop: 20,000

Outlook
This index was capped by its Fibonacci 62% correction point. It could be moving within a bear flag that hints at more downside ahead. Stochastic remains weak and MACD is bearish. We are likely to see price breaking down the bear flag and diving to 18,810.

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: 13,209

Target price:

Protective stop:

Outlook
Price continues to range inside a channel consolidation zone. It hit its upper channel boundary and we are likely to see price moving lower to its lower channel at 12,930. Stochastic is rising. MACD remains bullish but it could be giving potential divergence warning.

Trading Idea
Wait for better trading idea.

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7761

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.

Market News

• Wall Street ended lower on Thursday after PacWest’s move to explore strategic options deepened fears about the health of U.S. lenders and hit shares of regional banks as well as JPMorgan Chase, Wells Fargo & Co and other major financial players.

• Regional banks and tightening credit conditions are weighing on the market as investors try to recalibrate on where we are in terms of credit cycles and bank lending standards, and when a potential recession may hit, said managing director of diversifying strategies at TIFF Investment Management.

• The Fed on Wednesday raised interest rates by 25 basis points, while Chair Jerome Powell said that it was too soon to say with certainty that the rate-hike cycle was over as inflation remains the chief concern.

Market Views

• Asian markets were higher on Friday morning, recovering a measure of recent losses as markets awaited more cues on a brewing U.S. banking crisis, while softer-than-expected economic readings saw Chinese markets lag their peers. Hang Seng index rose 128 points and Nikkei 225 index gained 34 points.

• Australia’s central bank still sees that “some further tightening of monetary policy” may be required to rein in inflation, the Reserve Bank of Australia said in its May Statement on Monetary Policy.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,203

Target price:

Protective stop:

Outlook
This index broke and closed below its neckline support, forming a potential double top chart pattern. As long as price moves below the neckline which has become a resistance at 33,250, we see price moving lower to 32,460. Stochastic is falling and MACD is bearish.

Trading Idea
Wait for better trading idea

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 20,085

Target price:

Protective stop:

Outlook
This index could be moving within a sideway consolidation zone between 19,381 and 20,236. As long as the upper range of 20,236 is not penetrated, there is higher chance that price could test 18,810. A bearish Stochastic crossover is likely. MACD remains bearish.

Trading Idea.
Sell 20,230 for 19,210 with a stop above 20,300

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 13,040

Target price:

Protective stop:

Outlook
Price moves within a sideway consolidation range between 12,815 and 13,288. It is currently being supported by the 20EMA, and we could see price testing its upper boundary at 13,260 again. Stochastic is falling but MACD remains bullish.

Trading Idea
Wait for better trading idea.

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7736

Target price:

Protective stop:

Outlook
Price broke and closed below the 20EMA on 2 May. A corrective rebound to 7837 is likely as price hit the Fibonacci 38% correction point. Stochastic is near to the oversold zone and MACD could be turning up soon.

Trading Idea
Wait for better trading idea.

Market News

• Major U.S. stock indexes fell more than 1% each on Tuesday as regional bank shares tumbled on renewed fears over the financial system and as investors tried to gauge how much longer the Federal Reserve may need to hike interest rates.

• The Fed is expected to announce Wednesday it will raise rates 25 basis points, and investors are anxious for any signals from the central bank on whether it will be the last hike for now, or if further increases are possible if inflation remains high.

• Treasury Secretary Janet Yellen said the federal government could be unable by June 1 to meet all of its payment obligations without legislation to raise Washington’s borrowing limit.

Market Views

• Asian stocks were mixed on Wednesday morning with losses skewed towards financial shares as a rout in U.S. banks spilled over, while investors also turned cautious before the conclusion of Fed meeting later in the day. Hang Seng index fell 348 points while Nikkei 225 index rose 34 points.

• Oil prices fell sharply Tuesday following an unexpected contraction in Chinese factory activity, reported Sunday, and ahead of further interest rate hikes expected from the Fed and European Central Bank this week.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,725

Target price:

Protective stop:

Outlook
This index managed to stay above the 20EMA despite the intraday penetration, keeping the uptrend intact. As long as it stay above the 20EMA, we are likely to see price testing its high of 34,258 again. Stochastic is rising and MACD remains bullish.

Trading Idea
Wait for better trading idea

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 19,551

Target price:

Protective stop:

Outlook
This index was capped by the 20EMA resistance point, coinciding with the Fibonacci 50% correction point. It is going to test its previous low of 19,381, and once this low is violated, we could expect a further decline to 18,810. Stochastic is weak and MACD is bullish.

Trading Idea.
Wait for better trading idea.

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 13,125

Target price:

Protective stop:

Outlook
Price is likely to range within the sideway consolidation zone of 12,815 and 13,288 until either ends is broken. Since it is deviating from the upper boundary, price is expected to test the lower boundary at 12,815. Stochastic is likely to fall. MACD could be giving potential divergence warning.

Trading Idea
Wait for better trading idea.

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation: Long @ 7820

Last: 7856

Target price: 7925

Protective stop: 7790 triggered

Outlook
This index has been moving lower after reaching a price high at 7934. It violated the 20EMA yesterday and if it can’t move back above the 20EMA, we are likely to see price moving lower to 7570. Stochastic is falling but MACD remains bullish.

Trading Idea
Buy 7820 for 7925 with a stop below 7790. Entry order was filled on 28 April. Stop was triggered on 28 April.

Market News

• The tech-heavy Nasdaq led a Wall Street rally on Thursday as a strong quarterly report from Facebook parent Meta Platforms overshadowed concerns over slowing U.S. economic growth. Shares in Meta closed up 13.9% after touching their highest level in more than a year after the company forecast quarterly revenue above estimates.

• U.S. economy expanded by 1.1% in the first quarter, a much-slower-than-expected pace, the Commerce Department said. Economists had forecast expansion of 2%. The report showed stronger inflation with prices increasing 4%, compared with an estimate of 3.7%.

• Japan’s unemployment rate rose to 2.8% in March, from 2.6% in February, government data showed. The reading was higher than Reuters’ forecasts of 2.5% and marks the highest reading since January 2022. The nation’s jobs-to-applicant ratio was at 1.32, below Reuters’ forecasts of 1.34.

Market Views

• Asian markets rallied on Friday morning after Wall Street logged one of its best days in the year, powered by earnings from Big Tech companies. Hang Seng index rose 189 points and Nikkei 225 index gained 198 points.

• Bank of Japan officials have started planning a “broad policy review” including discussions of a change to its forward guidance. The report added while the talks include deferring a decision on YCC tweaks, there is a possibility of a follow-through taking around a year after the review.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,794

Target price:

Protective stop:

Outlook
This index rebounded strongly from its support zone last night, forming a big bullish engulfing candlestick pattern. We are likely to see price testing its previous high at 34,130 again. Stochastic is still weak but MACD remains bullish.

Trading Idea
Wait for better trading idea

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 19,972

Target price:

Protective stop:

Outlook
This index was capped by the 20EMA resistance point, coinciding with the Fibonacci 50% correction point. Stochastic is near to the oversold zone but MACD remains bearish. We could see price continuing its downward movement if it remains below the 20EMA.

Trading Idea.
Wait for better trading idea.

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation: Short @ 13,150

Last: 13,125

Target price: 12,650

Protective stop: 13,150 Triggered

Outlook
Price re-tested its previous high resistance point for a fourth occasion after a one-day strong rally last night. If price unable to penetrate this resistance, we see price falling to 12,820 again. Stochastic just had a bullish crossover but still weak. MACD is weak as well.

Trading Idea
Sell 13,150 for 12,650 with a stop above 13,300. Lower stop to 13,150 on 26 April. Stop was triggered on 27 Apr.

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7856

Target price:

Protective stop:

Outlook
This index rebounded after being supported by the 20EMA support. As long as it stays above the 20EMA, we see price testing 7934 again. A violation of the 20EMA is likely to lead to a decline to 7650. Stochastic is falling but MACD remains bullish

Trading Idea
Buy 7820 for 7925 with a stop below 7790.