Market News
- The Dow and S&P 500 ended modestly lower on Friday, dragged down by losses in blue-chip technology stalwarts Intel and IBM following their quarterly results, as hopes for a full economic reopening in the coming months waned.
- President Biden said on Friday the U.S. economic crisis was deepening and that the government needs to take major action now to help struggling Americans. The Senate Finance Committee unanimously approved Janet Yellen’s nomination as the first woman Treasury secretary, indicating that she will easily win full Senate approval.
- Pfizer, last week, said it was temporarily slowing supplies to Europe to make manufacturing changes that would boost output. On Friday, AstraZeneca said that initial deliveries to the region will fall short because of a production glitch.
Market Views
- Asian shares edged higher on Monday morning despite rising COVID-19 cases and doubts over the ability of vaccine makers to supply the promised doses on time soured risk appetite. Hang Seng index surged 504 points and Nikkei 225 index gained 135 points.
- Hong Kong locked down an area of the Kowloon peninsula on Saturday, the first such measure the city has taken since the pandemic began while some countries including Mexico recorded their highest daily case numbers.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 31,106
Target price:
Protective stop:
Outlook
Last Wednesday, this index penetrated its previous high and created a new all-time high at 31,286. However, price closed with a Doji indecision candlestick. It has been capped by this high on several occasions and it has to break through this resistance for more upside. MACD is bullish now but is giving potential divergence warning that hint of a potential high. Stochastic has been staying at overbought region for extended periods.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short @ 29,540
Last : 29,973
Target price: 29,020
Protective stop: 29,750 Triggered
Outlook
There is a two days minor pullback after this index hit our second target price zone of 30,170-30,350. It appears to rebound today and if so, it could form a potential Flag breakout and we could peg our target at 31,080. Stochastic is still strong and bullish, and a bullish crossover is likely. MACD is also strong and bullish
Trading Idea
Sell 29,540 for 29,020 with a stop above 29,750. Entry and Stop were triggered on 25 Jan.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 13,466
Target price :
Protective stop:
Outlook
Price further penetrated its previous all-time high of 13,432 today. It is going to head higher towards the next resistance at 13,560. Stochastic is still strong and is rising at the moment. MACD is also bullish and there is a bullish crossover.
Trading Idea
Wait for better trading idea
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 28,749
Target price:
Protective stop:
Outlook
Price could be consolidating within a Pennant chart pattern, which is one of the continuation patterns. The 20EMA is still rising, confirming the bullish trend. We look forward for price breaking out from the Pennant for 30,860. Stochastic is still strong and is rising. MACD is also bullish.
Trading Idea
Buy 28,700 for 30,860 with a stop below 28,350.
