- U.S. stocks closed higher on Thursday, bouncing from sharp losses in the prior session, thanks to a broad rally as earnings season got off to a strong start and fears lessened around hedge funds selling long positions to cover shorts. Microsoft, Amazon and Alphabet were the biggest boosts to the S&P 500.
- Shares in GameStop and AMC tumbled more than 40% after a meteoric rise in recent sessions in a social media-driven trading frenzy that shook stock markets. Trading platforms, including Robinhood and Interactive Brokers, restricted trading in several stocks that soared this week, easing concerns about a ripple effect to the broader market.
- Investors were impressed by a smaller-than-expected rise in U.S. weekly jobless claims overnight. But they still rose by more than 840,000 and data showed the U.S. economy contracted at its sharpest pace since World War Two last year.
- Markets in Asian were mixed on Friday morning as a liquidity squeeze in China and a Wall Street retail-trading frenzy has unnerved investors. Hang Seng index rose 100 points while Nikkei 225 index fell 51 points.
- China’s central bank injected 100 billion yuan into the financial system on Friday after a week of sucking liquidity which had put investors on edge as to whether the supportive policy environment could be shifting.
Dow Jones Index
(CFD Symbol: US30)
Last : 30,396
Price was capped by its all-time high resistance of 31,286, and has been moving lower since then. It broke below the 20EMA support three nights ago. It could be heading lower towards 29,270 if it could not stand back above the 20EMA. Both Stochastic and MACD have given divergence warning that hint for potential top. Stochastic is falling now and MACD is moving lower after a bearish crossover
Sell 30,700 for 30,050 with a stop above 30,980.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 29,050
Last : 28,613
Target price: 31,150
Protective stop: 28,700 Triggered
This index is now undergoing a price correction after being resisted by the resistance zone of 30,180. Price is now testing the 20EMA which coincides with the Fibonacci 38% correction point of Dec 20-Jan 20’s price swing. If the 20EMA could not hold the decline, we could see a deeper pullback towards 28,040 or 27,550. Stochastic is still strong. MACD is also bullish at the moment.
Buy 29,050 for 30,150 with a stop below 28,700. Entry and stop were triggered on 28 Jan.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,031
Target price :
A huge Bearish Engulfing reversal candlestick was formed after price created a new all-time high at 13,609. It is now testing the first 20EMA support at 13,060, and if this support breaks, this index could head lower towards 12,600. Stochastic is falling now while MACD remains bullish. There is a bearish MACD crossover.
Wait for better trading idea
Nikkei 225 Index
(CFD Symbol: JP225)
Recommendation: Long @ 28,700
Target price: 30,860
Protective stop: 28,350 Triggered
This index broke below the Pennant chart pattern three days ago, confirming the breakdown. It is now breaking the 20EMA support at 28,135. If price closes below the 20EMA today, we could see price moving lower towards 27,260. Stochastic is falling at the moment but MACD is still bullish.
Buy 28,700 for 30,860 with a stop below 28,350. Entry was filled on 26 Jan. Stop was triggered on 28 Jan.