Hope for U.S-China trade deal boosted the market

CNBC reported that Treasury Secretary Steven Mnuchin said U.S and China were about 90% to reach a deal. The news boosted stock futures before the opening bell. If both parties could reach a deal then the equity market should experience strong buying.

In today trading session, traders will monitor the release of Core Durable Goods Orders, the forecast sees 0.1% increase m/m.

Asian & European Stock market

Asian stock market slightly lower today. Japan’s Nikkei down 107.22 points (-0.51%) to 21,086.59, China stock market down 5.79 (-0.19%) to 2,976.28, and Australia ASX 200 down 17.50 points (-0.26%) to 6,640.50. European stock market turns higher. DAX Germany up 0.43%, UK FTSE up 0.05%, Euro STOXX600 down 0.01%.

Technical Analysis

Dow Jones Industrial Average (INDU)

Rejection pushed the index lower in the previous trading day. But, the index might turn higher in today trading session as the index future pointed upward more than 100 points. DJIA range span between 26,000 – 27,000 at the moment and expected to print new all-time high soon.

CF Industries Holdings Inc (CF)

CF manages to climb above daily SMA 200 and extend its gain. The share prices have the potential to continue upward and reach $50.00. If the share prices turn lower then traders could look for long positions when it test daily SMA 200 and form a bullish pattern.

Gillead Sciences Inc (GILD)

GILD has a similar situation to CF, the share prices recently climbed above daily SMA 200. Yesterday, the share prices turn lower and look ready to test daily SMA 200. We have a higher high printed which mean long position has more chance to succeed. Look for bullish reversal near the daily SMA 200 before placing long positions.