CFD Indices – De-escalation In Middle East

Market News

  • U.S. stocks ended higher on Wednesday, but the day’s uneven path showed investors’ sensitivity to any signs of turmoil in the Middle East, with stocks rising on comments by Trump and paring gains on reports of blasts in Baghdad.
  • Trump responded overnight on the Iranian attack on U.S. forces that  no Americans were hurt and made no direct threats of a military response in an address to the nation. He the said Iran appeared to be standing down but added they will immediately impose additional punishing economic sanctions on the Iranian regime.
  • The ADP private payrolls jumped by 202,000 jobs in December, the largest gain since April, which was due to the adjustment difficulties related to the purging of employees who have permanently left company payrolls.

Market Views

  • Asian shares rebounded on Thursday morning and oil beat a retreat, as the U.S. and Iran backed away from the brink of further conflict in the Middle East and investors reversed their safety plays. Nikkei 225 index surged 473 points and Hang Seng index advanced 316 points.
  • Oil prices tumbled nearly 5% overnight following Trump’s remarks. During Asian trading hours on Wednesday, prices had surged about 4% in response to the Iranian attack.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,803
Target price:
Protective stop:

Outlook
The index experienced a huge selloff last night, sending the price lower to test the lower rising trendline support, which is also the previous resistance-turned-support level. Price rebounded from there thereafter. As long as price remains in the rising channel, our bullish view unchanged. Price will need to break above its new all-time high at 28,908 for further upside at   29,650. Stochastic is moving lower from the overbought extreme. MACD is bullish and could be turning up.

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Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 28,469
Target price:
Protective stop:

Outlook
A Dark Cloud Cover candlestick pattern, which is a top reversal pattern, had sent the index lower to 27,850. The index is now supported by the 20EMA at 27,957. A break of the 20EMA is likely to send the index moving lower towards 27,500, while a break of the trend channel will be bullish. MACD is still bullish but there is potential divergence warning and Stochastic is moving lower.

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Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 8924
Target price :
Protective stop:

Outlook
The index recorded a new all-time high of 8882 last Thursday, which is near to the rising channel resistance. Price is moving along with the rising 20EMA and is within the rising channel, the next resistance comes in at 9067. A break of the channel support will target for 8453. MACD is still bullish at the moment but just had a bearish crossover. Stochastic is moving lower.

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Nikkei 225 Index
(CFD Symbol: JP225)
Trend :
Recommendation :
Last : 23,645
Target price:
Protective stop :

Outlook
This index encountered a price retracement after reaching a high at 24,182. The pullback was supported by a rising trendline whereby price unfolded a Doji candlestick on Monday. Price is testing and is moving above the 20EMA and if this holds, we could see price moving higher towards its all-time high. Stochastic is turning up at the moment. MACD is still bullish at the moment and the fast line is turning up.

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