- S&P and Nasdaq slipped on Tuesday from record closing levels as investors digested a batch of corporate earnings results. 3M and Johnson & Johnson are one of the biggest boosts on the Dow as they benefited from the surge in coronavirus infections.
- Progress in stimulus talks is in focus, with U.S. Senate Majority Leader Chuck Schumer saying Democrats will move forward on President Joe Biden’s coronavirus relief plan without Republican support if necessary.
- The U.S. Federal Reserve is due to announce results its two-day policy meeting on Wednesday. Analysts expect the Fed to stick to its dovish tone to help speed the economic recovery.
- Asian markets looked set to rise on Wednesday morning, bouncing back from a steep sell-off on Tuesday, while Australian stocks were seen opening weaker in a catchup after a Tuesday holiday. Hang Seng index rose 39 points and Nikkei 225 index gained 49 points.
- Eyes are on Australian inflation figures due out later Wednesday, said Steven Daghlian, a market analyst at CommSec in Sydney, who noted both equities and the Aussie dollar have been “on a tear” after Aussie shares hit an 11-month high on Monday, which is close to pre-COVID levels.
Dow Jones Index
(CFD Symbol: US30)
Last : 30,891
Price was capped by its all-time high resistance of 31,286, and has been moving lower since then. It is now testing the 20EMA which is acting as support at the moment. There is a divergence warning given from both the Stochastic and MACD that is raising concern of a potential top. If price close below 20EMA at 30,820, we could see further price decline. Stochastic is falling now and MACD is moving lower after a bearish crossover.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Last : 29,494
This index is moving within the consolidation zone of 28,990-30,180. It is likely to move within this zone until either edge is broken. The 20EMA is still rising, suggesting a bullish trend and is also acting as another layer of support at 28,650. Stochastic is still strong and bullish. MACD is also bullish with both of its lines far above the zero line, confirming the price correction.
Buy 29,050 for 30,150 with a stop below 28,700.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,559
Target price :
Price further penetrated its previous resistance high and created an all-time high at 13,609 last night. The 20EMA is still rising, confirming the bullish trend now, and is acting as support at 13,110. The next resistance comes in at 14,360. Stochastic is still strong and is rising at the moment. MACD is also bullish and there is a bullish crossover.
Wait for better trading idea
Nikkei 225 Index
(CFD Symbol: JP225)
Recommendation: Long @ 28,700
Target price: 30,860
Protective stop: 28,350
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, and is acting as support at 28,180. We look forward for price breaking out from the Pennant for 30,860. Stochastic is still strong at the moment. MACD is also bullish.
Buy 28,700 for 30,860 with a stop below 28,350. Entry was filled on 26 Jan.