Positive vaccine development to boon the market

Moderna reported positive news for its vaccine development. All 45 patients in the early stage of human trials produce immune responses toward coronavirus. Meanwhile, President Trump signed legislation to impose sanction against China. The sanction come as a response toward China’s new security law toward Hong Kong. The sanction removed Hong Kong’s special privilege, the region will be treated the same as mainland China.

We might have mixed responses from the market as tension might spike between the U.S and China even though coronavirus vaccine news is encouraging.

Asian & European Stock market

The Asian stock market higher, excluding China. Japan stock market up 358.49 points (+1.59%) to 22,945.50, China stock market down 53.31 points (-1.56%) to 3,361.30 and Australia ASX 200 up 111.80 points (+1.88%) to 6,052.90. The European stock market move higher on vaccine hope. DAX Germany up 0.96%, FTSE UK up 0.73%, Euro STOXX 600 up 0.87%

Technical Analysis

Dow Jones Industrial Average (INDU)

The consolidation between daily SMA 100 & 200 is under threat after the DJIA index jumped sharply yesterday. The index heading higher toward the 27,000 handles and might reach it as DJIA futures currently up more than 200 points. Positive development from coronavirus vaccine might put more bullish pressure on the index.

Beyond Meat Inc (BYND)

BYND share prices climbed above the daily SMA 200 and set to start a new bullish trend. At the current time, the share prices pushed lower on a bearish correction. We have an area between $110.00 – $120.00 which acts as a support level. If the price continues lower then traders will observe the daily SMA 200 also the $100.00 handle.

Long positions between $100.00 – $120.00 could be taken when there is a major bullish reaction.