Market News
- U.S. stocks rose more than 1% on Thursday while the other two major indexes, the S&P 500 and Nasdaq posted record closing highs after another batch of upbeat earnings and data suggesting the labour market may be stabilizing.
- Stronger-than-expected results so far in the fourth quarter have driven up analysts’ expectations, and S&P 500 companies are now on track to post earnings growth for the quarter instead of a decline as initially expected.
- U.S. Treasury Secretary Janet Yellen on Thursday vowed to protect investors, but said financial market regulators needed to fully understand the recent trading frenzy involving GameStop Corp and other retail stocks before taking any action.
Market Views
- Asian markets were higher in early trading on Friday after progress in vaccine distribution and a large U.S. stimulus program sent two major Wall Street indexes to record closing highs. Hang Seng index gained 345 points while Nikkei 225 index advanced 389 points.
- Strength in the dollar limited gains in oil markets which continued their upswing as promised supply cuts mean inventories were likely to stay low, but the dollar’s weakening trend is still in play, with the currency predicted to stay range-bound or fall in the next three months.
Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 31,108
Target price:
Protective stop:
Outlook
Price rebounded with a Harami candlestick pattern after reaching near to its previous low support zone. It is going to test its all-time high at 31,286 again. The next resistance lies at 32,320. Stochastic is rising now. MACD is bullish and there is a bullish MACD crossover.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Long @ 28,900
Last : 29,266
Target price: 29,600
Protective stop: 28,500
Outlook
This index rebounded after being supported by the 20EMA support. Price gapped up on 2nd Feb and it managed to stay above this gap for the past few days. The 20EMA is rising and is acting as support. We could see price moving higher to test its resistance zone at 30,180 again. Stochastic is heading higher. MACD is also bullish at the moment.
Trading Idea
Buy 28,900 for 29,600 with a stop below 28,500. Entry was filled on 4 Feb 2021.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation :
Last : 13,582
Target price :
Protective stop:
Outlook
Price rebounded from the 20EMA support zone after forming a Bullish Engulfing candlestick pattern four nights ago. The 20EMA is still rising, suggesting the trend is still bullish. Stochastic is rising now. MACD remains bullish and there is a bullish MACD crossover. Price could head higher towards 14,260 if it can break above its resistance high of 13,609.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3877
Target price:
Protective stop:
Outlook
This index rebounded after slightly violated the 20EMA support. It is now trading above the 20EMA and has created a new all-time high resistance at 3876. The 20EMA is still rising, hinting at the bullish trend now. Stochastic is rising at the moment and MACD is still bullish.
Trading Idea
Wait for better trading idea
