Tag: JP225

CFD Indices 19 March 2019

Nicholas

Market News

  • Dow Jones Index advanced 65 points to 25,914, posting a four-session winning streak as gains in Apple helped to offset losses in Boeing. Both S&P 500 and Nasdaq 100 Index posted a slightly bigger percentage gain compared to the Dow Jones Index.
  • The S&P 500 closed higher as gains in energy and consumer discretionary stocks helped offset falls in shares of Boeing while Apple and Amazon’s gain help Nasdaq higher despite a fall in Facebook. A better exposure to the US market may be in the form of US500 or USTec which has performed better than the US30, which is weighed down by Boeing
  • A 2 day FOMC policy meeting starts tonight with market eagerly awaiting its outcome. CME Group’s Fed Watch tool has predicted market expectation for a rate hike is at zero. Investors are also looking for clues about Fed’s economic outlook as well as details of its 3.8 trillion of bond sale.

Market View

  • MSCI’s broadest index of Asia-Pacific shares outside Japan was virtually flat, just a hair away from the highest level since Sept. 21. Japan’s Nikkei average dropped 0.5 percent, while Australian stocks eased 0.1 percent. Hang Seng Index was also negative.
  • Less hawkish comments from Fed, easing of recession fear and potential for a resolution on US-China trade talks are likely to drive the equity market higher in the coming days.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bullish
Recommendation : Long
Last : 25,970
Target price: 26,180
Protective stop: 25,775

Outlook

Price broke above the resistance zone at 25,926 and managed to stay above the resistance zone for the past 8 hours. Price needs to stay above this resistance zone to be bullish. Both MACD and Stochastic have shown bearish divergence warnings, hinting of a possible top. Upside could be limited to 26,180.

Trading Idea

Look to enter near the 20EMA support at 25,910 for a possible rally to 26,180.

Hang Seng Index

(CFD Symbol: HK50)

Trend : Bullish
Recommendation : Long
Last : 29,403
Target price: 30,000
Protective stop: 29,035

Outlook

Price broke above the previous high of 29,309 to reach a high of 29,539 this morning. 20EMA is pointing upward and showing a strong bullish trend. However both MACD and Stochastic are not strong and have yet to make a higher high with higher price peaks. In fact both MACD and Stochastic could be giving divergence warnings soon. First support is at 25,285.

Trading Idea

Keep long for 30,000 but keep a close watch on the 20EMA for possible turn in trend direction. Watch support at 25,285.

Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bullish
Recommendation : Long
Last : 7327
Target price: 7370
Protective stop: 7290

Outlook

Price made a new high last night at 7240. 20EMA is rising and the gradient of the slope is steep, hinting of a strong bullish trend. However, price is rising in the form of a Rising Wedge chart pattern. A Rising Wedge chart pattern is a bearish reversal hint. Both MACD and Stochastic are starting to give bearish divergence warnings hinting of a possible price high in formation.

Trading Idea

Keep long but keep a tight stop. First sign of a reversal of the uptrend would be the previous high at 7285.

Nikkei 225 Index

(CFD Symbol: JP225)

Trend : Bullish
Recommendation : Buy
Last : 21,579
Target price: 21,900
Protective stop : 21,360

Outlook

Price broke above the triangle pattern and has been rising. The rise however is not as strong as we would have liked. The rally seems to lack strength and momentum. Both Stochastic and MACD are showing signs of a bearish divergence, hinting of a possible price high forming.

Trading Idea

Keep long but keep a stop below 21,360. Target remains at 21,900.

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CFD Indices 15 March 2019

Nicholas

Market News

  • S&P 500 and NASDAQ closed lower, the first time in four sessions after release of a weak US home sale data. Dow managed to eke out a marginal 7 points gains.
  • US-China trade talk is being push back to April as Trump is in no rush to complete a deal, while China’s President Xi would like to link a formal state visit to the States to a trade deal announcement. President would like a deal iron out before he sits down with Trump
  • US New Home Sales fell 6.9% in Jan, which was more than expected, in part due to a government shutdown. China Industrial Output had expanded at the slowest rate in the past 17 years the day before and both these news are adding to worries over a global economic slowdown.

Market View

  • Asian markets were mixed this morning. While Nikkei 225 managed to climb higher, Australian 200 Index was negative as investors digest new development on US-China trade front.
  • Short term wise, the US indices may have reached a peak and we could see some pullback. Australian 200 Index’s rally seems like a corrective rally while Nikkei 225 and Hang Seng are both looking like a consolidation pattern.

Dow Jones Index

(CFD Symbol: US30)

Trend :
Recommendation :
Last : 25,756
Target price:
Protective stop:

Outlook

Price moved in a sideway pattern yesterday and tonight closing will have a bearing on next week’s direction. Price has not been able to move past its Fibonacci 62% correction point and that is our major concern. MACD has shown a bearish divergence, hinting of a possible top. Stochastic has a bearish divergence as well and is moving lower.

Trading Idea

We prefer to stay aside for today and wait for better trend direction.

Hang Seng Index

(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 28,920
Target price:
Protective stop:

Outlook

Price is consolidating in a sideway rectangle pattern while Stochastic is moving lower from overbought zone. This is usually a bullish hint especially when the MACD is bullish. We think there is a good chance the index will try the 29,156 resistance point next week when the consolidation is over.

Trading Idea

Wait for better and clearer trend direction.

Nasdaq 100 Index

(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7246
Target price:
Protective stop:

Outlook

Price made a new high 2 days ago with MACD bearish divergence warning. Price is likely to see a correction. Support is at 7196 and Fibonacci 38% support is at 7148. The latter support could provoke a reversal for the uptrend to resume again.

Trading Idea

We prefer to buy dip at 7148. Use a likely correction to buy the dip at 7148 for a possible test for 7284 high again.

Nikkei 225 Index

(CFD Symbol: JP225)

Trend :
Recommendation :
Last : 21,494
Target price:
Protective stop :

Outlook

Price is in a triangle consolidation at the moment. A triangle pattern is usually a continuation pattern. We are expecting price to resume its upward movement once the triangle consolidation is over. Stochastic is neutral at the moment. MACD is bullish and could be turning up. A move above 21,550 would be the first hint of a price rally towards 21.900.

Trading Idea

Watch the upside breakout at 21,550 and follows in the direction for 21,900.

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CFD Indices 8 March 2019

Nicholas

Market News

  • Last night, ECB slashed it growth forecast, delayed a planned rate hike to 2020 and launched an emergency round of policy stimulus. This sudden action led to investors fearing the worst for the global economy, bringing down stock indices around the world.
  • The global economy saw Bank of Canada took a sudden dovish turn in its economic view while Australia reported a woeful GDP number. China’s economic woes have already worried investors since the start of 2019.
  • Tonight Non-Farm Payroll will be closely watched with investors looking out for signs whether the US economy might be slowing down. The US economy is the only healthy major economy left in the world.

Market View

  • With worries over the health of the global economy, we are expecting the decline in market indices to continue. The decline, which started 3 days ago, is likely to continue into next week.
  • Asian markets are expected to be weaker today. Nikkei index is down by close to 200 points. Shanghai and Hang Seng are expected to be weak for today.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bearish
Recommendation : Short
Last : 25,439
Target price: 25,000
Protective stop: 25,760

Outlook

Price is staying below a steep downward sloping 20EMA which is indicating a strong bearish trend. The Head and Shoulder chart pattern which has a price target of 25,500 has already been met. MACD is still bearish and Stochastic is weak. With the strong trend, we are expecting a price movement to target at 25,000.

Trading Idea

Keep the bearish view with 25,000 as the target. Resistance at 25,650 would be a good location to get into a short position.

Hang Seng Index

(CFD Symbol: HK50)

Trend : Bearish
Recommendation : Short
Last : 28,377
Target price: 27,775
Protective stop: 28,950

Outlook

Price broke and opened below the support zone this morning. We are expecting this decline to continue into next week given the strong trend. Price has already reached the Fibonacci 38% retracement level and the next support lies at 28,070. Both momentum oscillators are bearish.

Trading Idea

Keep short for Fibonacci 50% or 62% retracement levels.

Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bearish
Recommendation : Short
Last : 7012
Target price: 6968
Protective stop: 7115

Outlook

Price broke below the trend line and has moved to our target at Fibonacci 50% correction level. 20EMA and the trend are strong and bearish. Price should be moving lower to test the Fibonacci 62% point at 6968. MACD is bearish and Stochastic is weak. Both momentum oscillators are hinting of a price decline.

Trading Idea

Keep short for the next Fibonacci target at 6968.

Nikkei 225 Index

(CFD Symbol: JP225)

Trend : Bearish
Recommendation : Short
Last : 21,146
Target price: 20,845
Protective stop : 21,500

Outlook

Price broke the trendline and is moving towards its base at 20,846. This channel also looks like a Rising Wedge chart pattern, which is a reversal pattern and has a price target of 20,845. Stochastic is weak and MACD has turned bearish.

Trading Idea

Look to get into a short positon close to the 20EMA at 21,400. Target is at 20,845

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CFD Indices 7 March 2019

Nicholas

Market News

  • US indices closed at a 3-day low after investors run out of reasons to buy after the market’s strong rally since the start of the year, which has moved the market up 18%
  • A record 2018 US trade deficit did not help the US market. Fed’s member Williams comment about the persistence of low inflation further curtailing expectation of interest rate hikes in the near future did not help the market.
  • Chinese stocks have staged a robust rebound this year, recouping much of 2018’s losses, buoyed by hopes that Beijing will roll out more support and measures for a slowing economy. Signs of progress in US-China trade talks also help.

Market View

  • With US reporting season ending, investors are looking for next catalysts to drive the market with tomorrow Non-Farm Payroll being the main focus.
  • Asian markets are weaker today with Hang Seng and Nikkei index down by more than 100 points. Shanghai index was little changed for today.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bearish
Recommendation : Short
Last : 25,651
Target price: 25,500
Protective stop: 25,925

Outlook

Price stayed below the 20EMA after breaking below the neckline of a Head and Shoulder chart pattern which has a price target of 25,500. Price is approaching the previous low at 25,615. MACD is bearish. We are expecting a price movement to target at 25,500.

Trading Idea

Look to get into a short position if price moves to the 20EMA and previous resistance at 25,750.

Hang Seng Index

(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 28,955
Target price:
Protective stop:

Outlook

Price moves in a range of 29,200 to 28,650. Price tested the top of this range yesterday and this morning has started to move lower. Stochastic is into overbought extreme and likely to move lower but MACD is still bullish. A break below 28,615 would hint of a decline to 28,070

Trading Idea

Price is in a range. We would recommend playing with the range. Look to short near to 29,000 with a stop above 29,250.

Nasdaq 100 Index

(CFD Symbol: USTec)

Trend : Bearish
Recommendation : Short
Last : 7092
Target price: 7012
Protective stop: 7135

Outlook

Price broke below the trend line and the 20EMA and the trend is now bearish. Price should be moving lower to test the Fibonacci 50% point at 7012. MACD is bearish and Stochastic is moving lower. Both momentum oscillators are hinting of a price decline.

Trading Idea

Look to get into a short position at resistance point of 7109 for a decline lower to 7012

Nikkei 225 Index

(CFD Symbol: JP225)

Trend : Bearish
Recommendation : Short
Last : 21,612
Target price: 21,360
Protective stop : 21,800

Outlook

Price broke the trendline and is moving towards its target at 21,360. This channel also looks like a Rising Wedge chart pattern, which is a reversal pattern and has a price target of 20,845. MACD has turned bearish. Price is moving towards the channel target at 21,360. Another possible target lies at previous high of 21,260

Trading Idea

Keep short position if short at yesterday’s breakout for target at 21,360. If not, look to get into a short positon close to the 20EMA at 21,585. Target is at 21,360 or 21,260

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CFD Indices 6 March 2019

Nicholas

Market News

  • US indices were little changed from the previous day as the market awaits news on trade deal negotiation between US and China. A good set of ISM data which showed the most new orders since Aug 2005 failed to excite the market.
  • Mike Pompeo had said on Monday that negotiation was on a “cusp of a deal” but on Tuesday, he said “things are in good place but it got to be right”. This got market worried that a deal might not be so soon.
  • China has given a 6-6.5% growth target for 2019 but recent China’s data have been poor. Will growth be able to meet the government’s target are on many investors’ mind.

Market View

  • Trade deal resurfaced again as market waits for confirmation of a deal. US indices have climbed 18% in the past 3 months. Investors are wary of a market correction.
  • Asian markets are tentative this morning. Nikkei 225 is weaker but both Shanghai and Hang Seng Index are positive.

Dow Jones Index

(CFD Symbol: US30)

Trend : Bearish
Recommendation : Short
Last : 25,777
Target price: 25,500
Protective stop: 25,975

Outlook

Price stayed below the 20EMA after breaking below the neckline of a Head and Shoulder chart pattern. The price target of the pattern is 25,500. MACD is bearish. We are expecting a price movement to target at 25,500.

Trading Idea

Look to get into a short position if price moves towards the resistance zone near 25,900 to 25,950 with a stop above 26,100.

Hang Seng Index

(CFD Symbol: HK50)

Trend :
Recommendation :
Last : 28,950
Target price:
Protective stop:

Outlook

Price continues to move within the trend channel. It is close to the bottom of the trend channel. Stochastic and MACD are both neutral at the moment and not giving any hints. A break below the channel would be an indication of a change in the current bullish channel to a bearish trend with a target at 28,815

Trading Idea

Watch the reaction at the trendline. A break below is an indication of a bearish movement lower to 28,815. If price manages to stay within the trend channel, it is likely to test the top end of the channel.

Nasdaq 100 Index

(CFD Symbol: USTec)

Trend :
Recommendation :
Last : 7128
Target price:
Protective stop:

Outlook

Price stayed above the trend line after testing it. Price is also around the 20EMA. This is an indication of a sideways movement at the moment. If price stays above the trend line, it is likely to test the topside again. A break will indicate a bearish movement to the base at 6988

Trading Idea

Watch for a break of the lower trend line and follow in the direction of that break for a ride down to 6988 level.

Nikkei 225 Index

(CFD Symbol: JP225)

Trend : Bearish
Recommendation : Short
Last : 21,612
Target price: 21,360
Protective stop : 21,800

Outlook

Price broke the trendline this morning. This channel also looks like a Rising Wedge chart pattern, which is a reversal pattern. MACD is still bullish but is declining into bearish zone. Stochastic is neutral at the moment. Price should be moving towards target at 21,360.

Trading Idea

Keep short position if short at this morning breakout. If not look to get into a short positon as close to the trendline breakout as possible. Target is at 21,360

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