Sunday 12 May 2019

Market Update: 12 May 2019

Ongoing US-China trade war will be the spark for the upcoming week. Last Friday, Thanos (Trump) threat to raise tariffs on $200 billion worth of Chinese exports from 10% to 25%, making a sharp escalation in tension between the world’s two largest economics. The coming days could be crucial waiting for China’s response.

DJI recovered around 300+ points and closed above the channel last Friday. Based on the chart, DJI might climb to around 26300 points or trade within the channel if it break above 26300. I believed Thanos (as a business man) will not destroy this bullish market created by him. However, he may create an artificial bearish as a reason for Fed to reduce interest rate. Nevertheless, DJI chart show a good trade setup to go long. SL once the price closes below the channel.

STI showing no clear signal after it has traded down over the last week from 3400 point. As I mentioned previously, no position consider as a position. Those who bought during the fake breakout highlighted in yellow, are trapped at the moment. I will continue to stay aside from STI till a better trade setup appears.

WTI is trading between 50% & 61.8% Fibo currently. Base on the weekly chart, WTI failed to close above the S/R line at $64. Therefore, I assume WTI will continue to trade sideways between 50% & 61.8% and high chance will reach to 38.2% ($58 follow by $55.70).

Overall: Everyone is waiting for Mr.Bear to hit the market. However, if crisis can be predicted accurately, it will not be name as a crisis. I strongly believed a Chinese comic idiom: “成也风云败也风云” which can be use over here as “成也特朗普败特朗普” (The idiom mean success and failure are both due to the same factor)

You are remind to trade base on your own risk. Plan and Trade well :)

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