Tag: AUS200

CFD Indices – New High In S&P 500 Despite Worries Over Sino-U.S. Trade Deal

Shueh Ting Wong

Market News

  • Last night, S&P 500 and Nasdaq hit all-time highs during trading but ended off session highs after a highly anticipated midday speech from Trump, with investors concerned ahead of time about any comments that would worsen the tariff dispute that has convulsed markets for more than a year. Dow Jones ended the day unchanged.
  • President Trump on Tuesday dangled the prospect of completing an initial trade deal with Beijing “soon” but offered no new details on negotiations in a campaign-style speech touting his administration’s economic record. He claimed that China cheated American on trade, but blamed U.S. leaders for letting it happen.
  • Trump reinforced that he would raise tariffs on Chinese goods “very substantially” if China does not make a deal with them, adding that’s going to be true for other countries that mistreat the U.S. as well.

Market Views

  • Stocks in Asia Pacific continued to fall on Wednesday morning on growing worries pertaining to U.S.-China trade talks that are stalling after President Trump failed to deliver any new information about when the two countries would sign a trade deal. Hang Seng index plunged 441 points while Nikkei 225 index fell 216 points.
  • The protests in Hong Kong contributed to the fluctuations in Asian market, where the political turmoil has escalated this week. Hong Kong Senior Superintendent Kong Wing Cheung told reporters Tuesday that the city’s society has been pushed to the brink of a total breakdown.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 27,644
Target price:
Protective stop:

Outlook
The index broke above the triangle pattern to close above its all-time high of 27,403 and continued with a new historical high at 27,773 last Thursday. However, the range for the past few days are narrowing, hinting at a stalling uptrend. A move below 27,502 is likely to bring price lower to test the 20EMA at 27,315 or the upper declining trendline. Price will need to break above 27,773 for further rally towards the Fibonacci 161.8% projection target at 27,978. Stochastic is in the overbought extreme but is still strong at the moment. MACD is bullish.

Trading Idea

Wait for better trading idea.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,543
Target price:
Protective stop:

Outlook
There was a Harami reversal pattern formed on Friday. Yesterday, price gapped down and closed lower, confirming the reversal pattern. It broke below the gap support of 27,600 as well as the 20EMA. Price opened with another gap down this morning, showing the bearishness of this index. It tested the 26,490 support today and if this level is unable to halt the decline, we expect further price decline towards 25,540. Stochastic is moving down at the moment. MACD is still bullish but just had a bearish crossover.

Trading Idea

Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8245 :
Target price :
Protective stop:

Outlook
The index made a new all-time high of 8293 last night and has remained in a rising channel and above the breakout level since end-August. It is very near to its overhead resistance of 8295. Price will need to break above 8295 for a test of 8492. However, the range for the past few days has been narrowing, which is giving concern. The index will only turn bearish if it breaks below the rising channel. Stochastic is in its overbought extreme. MACD is bullish and both its lines are rising.

Trading Idea
Wait for better trading idea

Australian 200 Index
(CFD Symbol: AUS200)
Trend :
Recommendation :
Last : 6763
Target price:
Protective stop :

Outlook
The index was capped by its previous high resistance as well as the declining trendline. There was a Harami candlestick pattern formed yesterday and we could see a confirmation of the reversal if price close below 6780 today. Price is on the way to test the 20EMA at 6724. It could head lower to 6662 or 6620 it price is unable to hold at 20EMA. There is divergence warning from the MACD. Stochastic could be turning down and MACD is still bullish but just had a bearish crossover.

Trading Idea

Sell 6785 for a price movement to 6665 with a stop above 6825.

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CFD Indices – Strong Earnings Offset By Delay In Trade Deal

Shueh Ting Wong

Market News

  • Stocks faltered on Tuesday as strong earnings from American drug makers Merck and Pfizer and expectations that Fed will cut rates was offset by a potential delay in a U.S.-China trade deal, which clouded sentiment and weakened the dollar.
  • A disappointing profit report from Google parent Alphabet kept the technology-rich Nasdaq in the red, ending 49 points lower. The S&P 500 eked out a record intraday high due to positive earnings but Dow Jones fell 19 points.
  • U.S. administration official said on Tuesday that an interim trade agreement might not be completed in time for signing in Chile next month as expected, while adding that did not mean the accord is falling apart.

Market Views

  • The Asian markets stuck in tight ranges early on Wednesday morning, as the prospect of a rate cut Fed was countered by worries a Sino-U.S. first-stage trade deal could be delayed. Nikkei 225 index was lower 81 points and Hang Seng index slipped 78 points.
  • Britain decided to hold an election on Dec. 12 following Prime Minister Boris Johnson winning approval from parliament for an early ballot aimed at breaking the Brexit deadlock, but the election would be highly unpredictable.

Dow Jones Index
(CFD Symbol: US30)

Trend :
Recommendation :
Last : 27,080
Target price:
Protective stop:

Outlook
The index is consolidating within a triangle pattern. It is now near to its overhead declining trendline resistance. Price will need to break above this level for a test to its all-time high at 27,403. The 20EMA is rising at the moment. As long as price holds above 20EMA, there is chance for price to test the declining trendline. Stochastic is moving up at the moment and MACD is still bullish.

Trading Idea

Wait for a better trading idea

Hang Seng Index
(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 26,751
Target price:
Protective stop:

Outlook
The index is moving within a rising channel. The 20EMA coincides with the lower boundary of the channel, acting as a layer of support. Price will need to break above the channel to test the gap resistance at 27,443. A move below the channel and 20EMA would target for 25,900. Both Stochastic and MACD are showing potential divergence warning. MACD is crossing down which hints at possible downward movement

Trading Idea

Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 8048 :
Target price :
Protective stop:

Outlook
The index broke above its all-time high of 8035 with a bullish candlestick on Monday. It is now moving within a rising channel. The 20EMA is rising at the moment. Price could be on the way moving higher towards its next resistance at 8256. The index will only turn bearish if it breaks below the channel. Stochastic is rising at the moment and MACD is still bullish.

Trading Idea
Wait for better trade idea.

Australian 200 Index
(CFD Symbol: AUS200)

Trend :
Recommendation :
Last : 6748
 Target price:
Protective stop :

Outlook
The index broke above the triangle pattern but was resisted by its previous resistance high. An evening star reversal candlestick was seen on Tuesday. Price is now testing the 20EMA support. If price could not hold at 20EMA, we will see a follow-through candle that confirm the reversal and will target at 6661. Stochastic is moving down and is likely to have a bearish crossover and MACD is also moving down.

Trading Idea

Wait for better trading idea.

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CFD Indices – China GDP Disappoints

Shueh Ting Wong

Market News

  • U.S. stocks gained last night as investor sentiment was buoyed by a string of corporate earnings beats and encouraging geopolitical developments. The Dow Jones index rose 23 points, S&P 500 index was up 8 points and Nasdaq Composite index closed 32 points higher.
  • Britain and the European Union agreed to a severance deal, moving closer toward wrapping up three years of uncertainties after Britons voted to leave the bloc. This deal needs to gain UK parliament approval and with DUP not supporting this agreement, there is still a lot of uncertainty.
  • Market sentiments were boosted as well as the upbeat statements from Beijing and Washington fuelled hopes that a phased agreement could ease the long-running U.S.-China trade negotiation that has rattled the global markets.

Market Views

  • Asian stocks markets mostly declined on Friday morning, as China released worse than expected GDP data as the protracted trade conflict with the US continues to take its toll on the Chinese economy. Nikkei 225 index rose 49 points while Hang Seng index is down 24 points.
  • China reported 3Q GDP number showing the Chinese economy grew 6.0% from a year ago, which was weaker than market expectation of 6.1%. It was the slowest growth pace in the past 27 years, as trade dispute with the US over the past 15 months weighed on the Chinese economy.

Dow Jones Index
(CFD Symbol: US30)

Trend :
Recommendation :
Last : 27,023
Target price:
Protective stop:

Outlook
The index has been moving higher after rebounding from the rising trendline. It is now near to its previous high of 27,310. The 20EMA is rising at the moment but the ranges for the past two days are comparatively small. This is a sign of indecision. We could see a possible correction back to test the 20EMA. Price will need to move above 27,125 for a test of 27,310 and its all-time high at 27,403. Stochastic is moving up at the moment. There was a bullish MACD crossover but the MACD is still bearish.

Trading Idea

Wait for a better trading idea

Hang Seng Index
(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 26,977
Target price:
Protective stop:

Outlook
The index has rebounded from the base low at 25,230 and has moved above the rising 20EMA. Price managed to stay above 26,490 for the past four days. It is on the way moving higher to test its previous high at 27,440. Stochastic is moving up at the moment. MACD has a bullish crossover in the bearish zone but MACD is still bearish at the moment.

Trading Idea

Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7931
Target price :
Protective stop:

Outlook
Price has moved above the key 7780 resistance level after rebounding from the rising trendline. It is now near to its previous peak of 7976. A Doji candlestick was followed-through last night after a Hanging Man candlestick which could hint of potential top. We could see a possible price correction to test 7780-7815 support zones. The index will only turn bearish if it breaks below the rising trendline. Stochastic is moving higher but is at overbought extreme and MACD is still bearish.

Trading Idea
Sell 7930 with stop at 8041 and profit target at 7800

Australian 200 Index
(CFD Symbol: AUS200)

Trend : Bearish
Recommendation : Short at 6759
Last : 6689
 Target price: 6618
Protective stop : 6805

Outlook
The index is capped by a declining trendline formed since end-July. Price closed with a Bearish Engulfing candlestick pattern yesterday, confirming the end of the rally and we expect a price correction. It is now sitting at the 20EMA but we don’t think this support can hold. Price is likely to move downwards towards 6618 or even lower to test the rising trendline. Stochastic could turn down in the coming session and MACD is still bearish.

Trading Idea

Sell 6759 for 6618 with stop above 6805 was filled yesterday

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CFD Indices – US Retail Sales Weighed On US Indices

Shueh Ting Wong

Market News

  • Wall Street lost ground on Wednesday as weak U.S. economic data and simmering geopolitical tensions spooked buyers away from the equities market, despite a string of generally positive third-quarter earnings reports. Dow Jones and Nasdaq Composite slipped 22 and 24 points respectively while S&P 500 declined 5 points, due to the drag from Microsoft which weighted heaviest.
  • American retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy, keeping the door open for Fed to cut interest rates again later this month.
  • U.S. Treasury Secretary Steven Mnuchin said on Wednesday that trade negotiators from two powerhouses were working on nailing down a Phase 1 trade deal text for their presidents to sign next month at the APEC Forum in Santiago.

Market Views

  • Major Asia Pacific markets were higher in Wednesday’s morning trade as news overnight boosted Brexit optimism, despite a weak overnight US market. Hang Seng index climbed 222 points and Nikkei 225 index rose 31 points.
  • Investors have welcomed optimistic comments from key officials during last few days. British culture minister Nicky Morgan said late on Wednesday there is a good chance of a deal.

Dow Jones Index
(CFD Symbol: US30)

Trend :
Recommendation :
Last : 26,981
Target price:
Protective stop:

Outlook
The index has been moving higher after rebounding from the rising trendline. It is now near to its previous high of 27,310. The 20EMA is rising at the moment. We could see a possible correction back to test the 20EMA. Price will need to move above 27,125 for a test of 27,310 and its all-time high at 27,403. Stochastic is moving up at the moment. There was a bullish MACD crossover but the MACD is still bearish.

Trading Idea

Wait for a better trading idea

Hang Seng Index
(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 26,944
Target price:
Protective stop:

Outlook
The index has rebounded from the base low at 25,230 and has moved above the rising 20EMA. Price managed to stay above 26,490 for the past three days. It is on the way moving higher to test its previous high at 27,440. Stochastic is moving up at the moment. MACD has a bullish crossover in the bearish zone but MACD is still bearish at the moment.

Trading Idea

Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7938
Target price :
Protective stop:

Outlook
Price has moved above the key 7780 resistance level after rebounding from the rising trendline. The 20EMA is rising at the moment and is providing a layer of support. Price is now near to its previous peak of 7976. The range for these two days has been narrowing which could be a hint of stalling uptrend. The index will only turn bearish if it breaks below the rising trendline. Stochastic is moving higher at the moment but MACD is still bearish.

Trading Idea
Wait for better trading idea

Australian 200 Index
(CFD Symbol: AUS200)

Trend :
Recommendation :
Last : 6755
 Target price:
Protective stop :

Outlook
The index is capped by a declining trendline formed since end-July. Price will need to close above the trendline and 6810 for a test of 6834. The 20EMA is rising at the moment. We could see a correction back to test the 20EMA at 6700, which is also the Fibonacci 62% correction point, if price closes below yesterday’s low at 6747. Stochastic is rising at the moment but MACD is still bearish.

Trading Idea

Wait for better trading idea.

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CFD Indices – China Lodged WTO Complaint

Shueh Ting Wong

Market News

  • Wall Street was closed for the Labour Day holiday last night, but futures contracts tied to the major indexes were trading and spiked lower.
  • Trade talks remain no closer to easing tensions as a date for negotiators to meet in September has yet to be determined with China’s focus increasingly turns towards the anniversary celebrations and then to the Party’s Fourth Plenum scheduled also for October.
  • Beijing has lodged a complaint against Washington at the World Trade Organization over U.S. import duties, the Chinese Commerce Ministry said on Monday. Under WTO rules, Washington has 60 days to try to settle the latest dispute. It could end with China gaining WTO approval to take trade sanctions, if U.S. is found to have broken the rules.

Market Views

  • Stocks in Asia Pacific were mixed in Tuesday morning as investors await Reserve Bank of Australia’s interest rate decision, due around 12:30 p.m. Singapore time. RBA announced an unchanged interest rate policy and rate at 1%. Nikkei 225 index rose 36 points while Hang Seng index fell 24 points as at 1pm today.
  • Recent data suggests the Australian economy remains soft with little sign of retail picking up on the back of tax cuts. Australian Retail sales for July declined 0.1% on a month-on-month, seasonally adjusted basis, lower than expectations of a 0.2% increase in a Reuters poll.

Dow Jones Index
(CFD Symbol: US30)

Trend :
Recommendation :
Last : 26,273
Target price:
Protective stop:

Outlook
Price closed with a shooting star candlestick pattern after testing the mid-June low resistance level which is also near to the Fibonacci 62% retracement point last Friday. Price gapped down yesterday. If this gap cannot be closed, price is likely to be resisted at this level and we could see a price decline back to test its previous low at 25,280. Stochastic is still rising but MACD is still bearish at the moment.

Trading Idea

Wait for better trading idea

Hang Seng Index
(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 25,612
Target price:
Protective stop:

Outlook
Price tested the declining 20EMA again on last Friday, but the attempt was not successful as price could not break above the 20EMA resistance level. We expect the index to trend lower and test its previous low at 24,941 again as the steep slope of the 20EMA is hinting at a strong downtrend. A move lower than 24,941 would target for 23,990. Stochastic is turning down at the moment. MACD is still bearish and a bearish MACD crossover is likely in the near term

Trading Idea

Wait for better trading idea.

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7646
Target price :
Protective stop:

Outlook
Price is still moving within a previous high and previous support point. Price is likely to move within the resistance at 7780 and support at 7355 until it can move out of this range. Stochastic has turned up again, but Stochastic is not strong at the moment. MACD is still bearish with both of MACD’s lines now below the zero line. There is a divergence warning from the histogram and a bearish crossover is likely in the near term

Trading Idea

Wait for better trading idea

Australian 200 Index
(CFD Symbol: AUS200)

Trend :
Recommendation :
Last : 6637
Target price:
Protective stop :

Outlook
Price managed to close above the 50EMA for the past three consecutive days. It is now capped by the previous high resistance and the Fibonacci 50% retracement point. As long as price can move above this level, we could see price moving higher to test 6730. A failure move would target for the low at 6410. Stochastic is rising at the moment but MACD is still bearish.  

Trading Idea

Wait for better trading idea.

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