- The tech-heavy Nasdaq index rallied in choppy trading on Friday, even as sentiment remained fragile after the index’s worst performance in four months the day before as fears of rising inflation kept U.S. bond yields near a one-year high. The S&P 500 ended little changed, while the Dow index closed lower after earlier dropping to a three-week low.
- U.S. House of Representatives passed a $1.9 trillion coronavirus relief package early Saturday. Democrats who control the chamber approved the sweeping measure by a mostly party-line vote of 219 to 212 and sent it to the Senate, where Democrats planned a legislative manoeuvre to allow them to pass it without the support of Republicans.
- China’s factory activity expanded at the slowest pace in nine months in February as weak overseas demand and coronavirus flare-ups weighed on output, adding pressure on the country’s labour market, a business survey showed on Monday.
- Stocks in Asia-Pacific traded higher on Monday, as data releases showed China’s manufacturing activity growth slowing in February. Hang Seng index rose 378 points while Nikkei 225 index advanced 665 points.
- Oil prices are recovering this morning in line with most risk assets on the back of the U.S. stimulus bill passing the House and as central banks continue to ward off market-implied financial tightening
Dow Jones Index
(CFD Symbol: US30)
Last : 31,177
Price appears to have found support at the Fibonacci 50% correction point of Feb 21’s rally. If this index can form a reversal candlestick pattern today, we could see price moving higher again. A failure to sustain at this support could hint for deeper correction. Stochastic is falling now but MACD is still bullish.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Last : 29,229
Price violated both the rising trendline support that formed since Dec 2021 and the 20EMA support last Friday. It has to hold above these resistances in order to move higher again, else we could see price moving lower towards 28,000. Stochastic is falling now. MACD is still bullish but there is a bearish crossover.
Sell 29,550 for 28,900 with a stop at 29,870
Nasdaq 100 Index
(CFD Symbol: USTEC)
Recommendation : Long @ 12,800
Last : 12,846
Target price : 13,250
Protective stop: 12,410
Price hit the support level for the third time last Friday. As long as this support holds, we could see price forming a potential Triple Bottom chart pattern and move higher to test its high again. The 20EMA at 13,320 will be the first resistance for price to breakthrough. Stochastic is near to the oversold region and is turning up now. MACD is still bullish
Buy 12,800 for 13,250 with a stop at 12,410. Entry order was filled on 26 Feb
Nikkei 225 Index
(CFD Symbol: JP225)
Price tested the 20EMA support and is now sitting at the Fibonacci 50% correction point of February’s rally. This index could mimic the January’s price movement and a move above 29,670 is likely to bring price testing the high again. Stochastic is still strong at the moment. MACD remains bullish at the moment.
Buy 29,350 for 30,720 with a stop at 28,960