Australia’s ASX All Ordinaries Index gained 2.1% and continues to rise after bouncing back from support along its 50-DMA. It is trading 5.2% above support along its 50-DMA. The index added one distribution day on Thursday and remains in a Confirmed Uptrend with three distribution days.
Author: Sandeeep N
Global Focus Emerging
The CSI 300 declined 2.27% this week on higher volume. We shifted the market to an Uptrend Under Pressure as the distribution day count rose to six. The CSI 300 broke below its 200-DMA on increased volume and is testing support at its 50-DMA (-0.2%). The next support is at ~3,740 (-2.2%), followed by ~3,637 (-4.9%). Resistance at previous highs of 3,998 (+4.5%) remains consistent.
Global Focus Frontier
Saudia Dairy and Foodstuffs Company (Sadafco) is engaged in the manufacturing and distribution of food products. UHT Milk, tomato paste and Icecreams are its major products.
China A Shares
The CSI 300 rose 1.3% this week in three trading sessions due to the holiday. The market remains in a Confirmed Uptrend with two distribution days. The index broke above key resistance at the 100-DMA on higher volume Friday, boosted by positive headlines that China and the U.S. are talking about the phase-one trade deal and that China is further opening up its financial market. The CSI 300 has hit a new high since March’s low and retaken all key moving averages. We are becoming more bullish and recommend investors buy ideas that have broken out of solid bases or bounced off key support levels with good volume. Meanwhile, focus on names with strong fundamental profiles. The CSI 300 is on track to test resistance near the upper gap (3,987‒4,028). We see immediate support at the 100-DMA (-0.58%), followed by the 200-DMA of ~3,896 (-1.7%) and the 50-DMA of ~3,848 (-2.9%). Most sectors recorded gains this week, with Consumer Staple and Technology outperforming while Financial and Transportation lagged.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rallied strongly this week, with the Nasdaq now positive for the year. The next level of resistance for the S&P 500 is the flattening 200-DMA at ~3000, while the Nasdaq faces resistance at ~9315. Support for both indices remains the rising 10- and 21-DMA. Distribution has been a non-factor with both indices at just two days.
European Focus
This week, the market oscillated between positive and negative territories in the face of news on COVID-19 vaccines and earnings. When compared with last Friday’s close, the Stoxx 600 was almost flat at Thursday’s close. The volume, however, remained low. Today, the market looks set to close in the green.
Global Focus Developed
Australia’s ASX All Ordinaries Index gained 3.6% this week. It faces resistance along its 50-DMA. The index remains in a Confirmed Uptrend. It added one distribution day this week, taking its total to two.
Global Focus Emerging
The CSI 300 rose 1.3% this week in three trading sessions due to the holiday. The market remains in a Confirmed Uptrend with two distribution days. The index broke above key resistance at the 100-DMA on higher volume Friday, boosted by positive headlines that China and the U.S. resumed talking about the phase-one trade deal and that China is further opening up its financial market. The CSI 300 has hit a new high since March’s low and retaken all key moving averages
Global Focus Frontier
Saudia Dairy and Foodstuffs Company (Sadafco) is engaged in the manufacturing and distribution of food products. UHT Milk, tomato paste and Icecreams are its major products.
China A Shares
The CSI 300 rose 3.04% this week on a four-day gaining streak and rose 6.14% this month. The market remains in a Confirmed Uptrend with three distribution days (two expired). The index retook its 50- and 200-DMA in two successive days and volume picked up although remained below average. We would like 200-DMA support to hold to remain constructive. The CSI 300 is testing immediate resistance at its 100-DMA (+0.6%), followed by the gap at ~4,028 (+3.0%). Beijing has eased its epidemic control measures and the annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Conference will be held May 22, raising expectations that economic recovery will speed up and more fiscal stimulus will be imminent. China’s official manufacturing PMI in April slipped to 50.8 from March’s 52.0, while the Caixin survey, which focuses mostly on small and export-oriented businesses, fell to 49.4, suggesting the pandemic shattered global demand. Our conviction has increased following Thursday’s resistance break and we recommend buying ideas that emerged from sound bases or key support levels with volume.
