Market News
- U.S. three major indexes plunged on Thursday, as losses in the Technology, Consumer Services and Industrials sectors led shares lower. Nasdaq Composite plummeted 538 points, while Dow Jones and S&P 500 slid 518 points and 111 points respectively.
- The U.S. Labour Department’s nonfarm payroll count due Friday will be watched closely by investors, which is seen as one of the major indicators of the how the U.S. economy is doing.
- Investors also continued to digest surprisingly hawkish comments from European Central Bank (ECB) President Christine Lagarde and the Bank of England (BOE) hiking its interest rate to 0.5% as it handed down its policy decision on Thursday.
Market Views
- Asia-Pacific markets were higher on Friday morning amid some lingering concerns about global growth and ongoing geopolitical tensions. Hang Seng index advanced 642 points and Nikkei 225 index rose 41 points.
- Oil prices slipped during Asian hours as U.S. crude futures fell 0.49% to $87.83 per barrel as OPEC and its non-OPEC allies agreed to green-light an increase in crude output to 400,000 barrels a day for March as oil prices trade near record levels in part due to geopolitical tensions.
Dow Jones Index
Trend:
Recommendation :
Last: 35,260
Target price:
Protective stop:
Outlook
This index has been rebounding after forming a long-legged Hammer candlestick pattern on 24 Jan. A possible price correction is likely to occur as this index could take a pause if price move below the 20EMA support. Stochastic is rising and MACD has turned bullish.
Trading Idea
Buy 34,700 with a stop below 34,100 for 35,650.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 24,465
Target price:
Protective stop:
Outlook
This index rebounded after forming a Bullish Harami reversal candlestick pattern at the resistance-turned-support level. It has moved above the 20EMA with a rising window and we are likely to see price testing its previous high at 25,242 again. Stochastic is still strong but MACD remains bearish
Trading Idea
Buy 24,150 for 25,250 with a stop below 23,850.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,769
Target price:
Protective stop:
Outlook
This index was resisted by the 20EMA resistance, which is also the Fibonacci 50% correction point. A possible retracement is likely towards 14,310 if price unable to surpass the 20EMA. Stochastic is rising but MACD remains bearish.
Trading Idea Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4523
Target price:
Protective stop:
Outlook
Price rebounded after forming a long-legged Hammer reversal candlestick pattern. It hit its support-turned-resistance level, which is also the Fibonacci 62% correction point. Price could form a potential Evening Star candlestick pattern and we could see price decline towards 4363 if this pattern is confirmed. Stochastic is rising and MACD has turned bullish.
Trading Idea
Wait for better trading idea.
