Market News
- U.S. markets ended the day sharply lower on Thursday after U.S. consumer prices data came in hotter than expected and subsequent comments from a Fed official raised fears the U.S. central bank will hike rates aggressively to fight inflation.
- U.S. Labour Department data showed consumer prices surged 7.5% last month on a year-over-year basis, topping economists’ estimates of 7.3% and marking the biggest annual increase in inflation in 40 years.
- Within minutes of Bullard comments, rate futures contracts were fully pricing an increase in the Fed’s target range for its policy rate to 1%-1.25% by the end of its policy meeting in June, with some bets on an even steeper rate hike path.
Market Views
- Shares in Asian markets were mixed in Friday morning trade, tracking losses seen overnight on Wall Street after the release of a hotter-than-expected U.S. consumer inflation report pushed the 10-year Treasury yield past 2%. Hang Seng index fell 23 points while Nikkei 225 index rose 116 points.
- Oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures down 0.48% to $90.97 per barrel. U.S. crude futures shed 0.29% to $89.62 per barrel.
Dow Jones Index
Trend:
Recommendation :
Last: 35,145
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. We are likely to see price resuming its upward momentum towards its previous high at 36,953 if it able to hold at 20EMA. Stochastic is near to the overbought region 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: 24,859
Target price:
Protective stop:
Outlook
This index rebounded after forming a Bullish Harami reversal candlestick pattern at the resistance-turned-support level. It has been rallying near to its previous price high and price has to penetrate above this high for more upside. Else, a correction towards the resistance-turned-support level is likely. Stochastic is near to the overbought region and MACD has turned bullish
Trading Idea
Buy 24,150 for 25,250 with a stop below 23,850.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,676
Target price:
Protective stop:
Outlook
This index was resisted by the 20EMA resistance for the second occasions. Price has to move above the 20EMA for a test towards the support-turned-resistance level at 15,500. Stochastic is rising but MACD remains bearish.
Trading Idea
Sell 14,800 for 14,150 with a stop above 15,100.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4488
Target price:
Protective stop:
Outlook
This index was resisted by the support-turned-resistance level for the third occasions. A Bearish Engulfing candlestick pattern was seen last night. If price cannot break though the support-turned-resistance level, we are likely to see a price decline again. Stochastic is near to the overbought region and MACD has turned bullish
Trading Idea
Wait for better trading idea.
