CFD Indices – Apple & Tesla Dragged USTEC Index Lower

Market News

  • Wall Street ended lower on Tuesday, with Nasdaq plunging 1.7%, mainly contributed by Apple and Tesla, while materials stocks climbed as investors waited for the U.S. Congress to approve another stimulus package. Dow Jones fell 0.5% while S&P 500 fell 0.8%.
  • Following strong gains in the prior session, technology shares dipped in the resumption of a rotation by investors out of stocks that outperformed due to the coronavirus pandemic and into others viewed as likely to do well as the economy recovers.
  • The U.S. Senate will start debating President Joe Biden’s relief bill this week when Democrats aim to pass the legislation through a manoeuvre known as “reconciliation,” which would allow the bill to pass with a simple majority.

Market Views

  • Asian shares edged higher on Wednesday morning as investors shrugged off concerns that stocks may have rallied too far too fast in the past year, and focused instead on optimism that more imminent U.S. stimulus will energise the global economic recovery. Hang Seng index surged 540 points and Nikkei 225 index rose 51 points.
  • Oil prices were mixed hitting a two-week low overnight on expectations that OPEC+ producers will ease supply curbs at their meeting later this week as economies start to recover from the coronavirus crisis

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 31,497
Target price:
Protective stop:

Price appears to have found support at the Fibonacci 50% correction point of Feb 21’s rally and a bullish Engulfing candlestick pattern was seen the next day. It is now moving above the 20EMA. We look forward for price breaking above 31,670 for 32,000. Stochastic could be turning up. MACD is still bullish.

Trading Idea
Buy 31,300 for 32,000 with a stop at 30,950.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation : Short @ 29,550
Last : 29,591
Target price: 28,900
Protective stop: 29,870

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.

Trading Idea
Sell 29,550 for 28,900 with a stop at 29,870. Entry order was triggered on 2 Mar.

Nasdaq 100 Index
(CFD Symbol: USTEC)
Trend :
Recommendation : Long @ 12,800
Last : 13,134
Target price : 13,250 Filled
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

Trading Idea
Buy 12,800 for 13,250 with a stop at 12,410. Entry order was filled on 26 Feb. Profit order was filled on 2 Mar.

Nikkei 225 Index
(CFD Symbol: JP225)
Recommendation: Long @ 29,350
Last: 29,518
Target price: 30,720
Protective stop: 28,960

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. A bullish Engulfing candlestick pattern was seen two days ago. As long as the low at 28,980 holds, we could see price testing the high again. Stochastic is still falling at the moment but MACD remains bullish.

Trading Idea
Buy 29,350 for 30,720 with a stop at 28,960. Entry was filled on 2 Mar.

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