Market News
- Shares on Wall Street ended higher on Tuesday in choppy trading, as investors took advantage of the previous session’s slump to buy them back, ahead of the outcome of the Senate runoff elections in the battleground state of Georgia, which will determine the balance of power in Washington.
- Along with their narrow majority in the House of Representatives, a “blue sweep” of Congress could usher in larger fiscal stimulus and it could also pave the way for President-elect Joe Biden to push through greater corporate regulation and higher taxes.
- The CBOE Volatility Index flip-flopped after closing at its highest level in two months on Monday, which saw Wall Street’s main indexes drop to two-week lows as investors booked profits at the start of the year. It ended down 6% at 25.34.
Market Views
- Asia Pacific markets were traded slightly lower on Wednesday morning as investors braced for the prospect that Democrats could win both races in a U.S. Senate run-off election in Georgia, handing them control of the crucial chamber. Hang Seng index fell 83 points and Nikkei 225 index slid 39 points.
- Oil prices held firm, maintaining their gains of nearly 5% made on Tuesday after Saudi Arabia offered to make voluntary cuts to its oil output. Tensions following OPEC member Iran’s seizure of a South Korean vessel also frayed nerves, adding further support to the market.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 30,356
Target price:
Protective stop:
Outlook
This index has been consolidating within an ascending channel. The 20EMA is rising and is acting as support at 30,190 at the moment. A violation of the 20EMA would likely bring price lower to the lower boundary at 29,670. Price is likely to continue its consolidation until either side is broken. Stochastic is still strong as it has been trading at the overbought region for an extended period. MACD remains bullish but there is divergence warning with a bearish MACD crossover.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 27,427
Target price:
Protective stop:
Outlook
This index has broken out from the descending channel on 29 Dec 20, which is a sign that price will resume its upward momentum. It penetrated its previous high of 26,768 on 30 Dec 20, strengthening the bullish trend. We could see this index moving higher towards the target price zone of 28,990-29,120 on a medium-term basis. Stochastic is at the overbought zone while the MACD is bullish and is moving higher
Trading Idea
Buy 27,250 for 28,150 with a stop below 26,850.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 12,645
Target price :
Protective stop:
Outlook
This index created a new all-time high at 12,965, before a big Engulfing candlestick formed on 4 Jan. Price is also trading near to the overhead resistance zone, which is the Fibonacci 161% projection level. It is testing the 20EMA now and if it closes below 20EMA at 12,640 tonight, there is a possible decline towards 12,200. Stochastic is falling from the overbought region. MACD is still bullish but there is divergence warning.
Trading Idea
Sell 12,800 for 12,450 with a stop above 13,000
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3703
Target price:
Protective stop:
Outlook
This index closed the day with an Engulfing candlestick pattern after creating a new all-time high at 3782 on 4 Jan. The 20EMA is now acting as key support at 3698 now. If price violates the 20EMA, there is chance for this index falling towards 3572. Stochastic is falling now. MACD is still bullish at the moment but could be forming potential divergence warning.
Trading Idea
Sell 3730 with a stop above 3785 for 3660
