Panic in the “World”

The widespread coronavirus in Italy leads the country to lock down North Italy which effectively put 16 million people in quarantine. It caused panic which sends the global stock market lower today. Adding to the panicky situation, OPEC failed to achieve a new consensus on production cut which lead to oil prices war. Today, oil prices tumble nearly 30%.

DJIA futures currently down 1300 points which indicate a massive lower opening. There is no bullish sign yet but technical rebound might happen after the massive selling. However, in the medium-long-term, the market expected to continue moving lower until coronavirus cure found.

Asian & European Stock market

The Asian stock market dive today. Japan’s stock market down 1050.99 points (-5.07%) to 19,698.76, China stock market down 91.22 points (-3.01%) to 2,943.29 and Australia ASX 200 down 455.60 points (-7.33%) to 5,760.60. The European stock market also deep underwater. DAX Germany down 5.14%, UK FTSE down 5.95%, Euro STOXX600 down 5.11%

Technical Analysis

Dow Jones Industrial Average (INDU)

It is hard to see the bullish scenario in the stock market as the market is in panic mode. DJIA expected to continue its bearish movement and target the level below 25,000. As long as there is no higher high printed on the chart, traders better waiting sideline or placing short positions only.

Advanced Micro Devices (AMD)

AMD share prices might be traded above the daily SMA 200 and in a bullish trend. However, the current global market situation might put pressure on share prices. $50.00 and the bottom of the channel are the levels to watch for a possible bearish bounce. Traders could place short positions with SMA 200 and lower as the target.