- U.S. stocks extended their recent rally on Friday and the S&P 500 and Nasdaq indexes scored their biggest weekly percentage gains since the U.S. elections in early November, boosted by optimism over earnings, stimulus talks and progress on vaccine rollouts.
- A smaller-than-expected rebound in the U.S. labour market last month highlighted the need for more government aid to shore up the economy. The Labour Department on Friday reported a small 49,000 increase in nonfarm payrolls last month, with job losses in manufacturing and construction.
- U.S. President Biden and his Democratic allies in Congress moved ahead with their $1.9 trillion COVID-19 relief package as lawmakers approved a budget plan that will allow them to muscle Biden’s plan through in the coming weeks without Republican support.
- Asia Pacific shares hovered near record highs on Monday morning on hopes a $1.9 trillion COVID-19 aid package will be passed by U.S. lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally. Hang Seng index advanced 280 points and Nikkei 225 index surged 598 points.
- China’s State Administration for Market Regulation released a new set of rules that will likely put pressure on leading internet services in the country such as Alibaba’s Taobao or Tencent’s WeChat Pay, according to Reuters.
Dow Jones Index
(CFD Symbol: US30)
Last : 31,317
Price rebounded with a Harami candlestick pattern after reaching near to its previous low support zone. There is an intraday penetration of the all-time high of 31,286 today. The next resistance lies at 32,290. Stochastic is rising now. MACD is bullish and there is a bullish MACD crossover.
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Hang Seng Index
(CFD Symbol: HK50)
Recommendation : Long @ 28,900
Last : 29,266
Target price: 29,600 Filled
Protective stop: 28,500
This index rebounded after being supported by the 20EMA support. The 20EMA is rising at the moment, suggesting the bullish price trend now. We could see price moving higher towards the resistance zone at 30,180 again. Stochastic is moving up now. MACD is also bullish at the moment.
Buy 28,900 for 29,600 with a stop below 28,500. Entry was filled on 4 Feb 2021.Profit order was filled on 8 Feb.
Nasdaq 100 Index
(CFD Symbol: USTEC)
Last : 13,682
Target price :
Price rebounded from the 20EMA support zone after forming a Bullish Engulfing candlestick pattern on 1 Feb. It has penetrated its all-time high of 13,609. The 20EMA is still rising, suggesting the trend is still bullish. Stochastic is rising now and MACD remains bullish. Price could head higher towards 14,480.
Buy 13,600 for 13,900 with a stop below 13,450
S&P 500 Index
(CFD Symbol: US500)
This index rebounded after slightly violating the 20EMA support. It is now trading above the 20EMA and has created a new all-time high resistance at 3894. The 20EMA is still rising, hinting at the bullish trend now. Stochastic is rising at the moment and MACD is still bullish.
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