Market News
- Wall Street ended sharply higher on Tuesday, reversing early losses and gained in the latter part of the session after being lifted by tech giants Apple and Microsoft, while a jump in Treasury yields elevated bank stocks ahead of a key inflation reading this week.
- Upbeat comments from French President Emmanuel Macron about his meeting with Russian President Vladimir Putin over the Ukraine crisis also dented oil prices and reduced anxiety on Wall Street, said Scott Ladner, chief investment officer at Charlotte-based wealth management firm Horizon Investments
- U.S. consumer prices data that will be released on Thursday, is forecast at a four-decade high of 7.3%, follow strong U.S. labour data last week that added to investor concerns that the Fed will tighten rates faster than thought
Market Views
- Asia Pacific stocks advanced on Wednesday morning with investors are keeping an eye on the tightening monetary policy. Hang Seng index jumped 473 points and Nikkei 225 index gained 246 points
- Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.37% to $91.12 per barrel. U.S. crude futures gained 0.27% to $89.60 per barrel.
Dow Jones Index
Trend:
Recommendation :
Last: 35,64
Target price:
Protective stop:
Outlook
This index has been rebounding after forming a long-legged Hammer candlestick pattern on 24 Jan. It is currently sitting at the 20EMA support and we are likely to see price resuming its upward momentum towards its previous high at 36,953. Stochastic is rising and MACD has turned bullish.
Trading Idea
Buy 35,110 with a stop below 34,700 for 36,350
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 24,824
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 rising and MACD has turned bullish.
Trading Idea
Buy 24,350 for 25,250 with a stop below 23,950.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,779
Target price:
Protective stop:
Outlook
This index was resisted by the 20EMA resistance. It is currently sitting at the Fibonacci 50% correction point of 24 Jan to 2 Feb’s rally. It has to surpass the 20EMA at 14,905 for 15,530. Stochastic is rising but MACD remains bearish.
Trading Idea
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4536
Target price:
Protective stop:
Outlook
The recent price correction appears to halt at the Fibonacci 38% correction point of 24 Jan-2 Feb’s rally. We are likely to see price testing its high at 4793 if it can penetrate above 4595. Stochastic is near to the overbought region and MACD has turned bullish.
Trading Idea
Wait for better trading idea.
