Market News
- Wall Street’s major indexes fell on Tuesday, with the S&P 500 confirming a correction, as the Ukraine-Russia crisis kept investors on edge after Russian President Vladimir Putin recognized two breakaway regions in the country and ordered troops to the area.
- Earlier on Tuesday, NATO Secretary-General Jens Stoltenberg said that the alliance believed Russia was still planning a big assault on Ukraine following Moscow’s recognition of two separatist regions in the former Soviet republic’s east.
- Biden added that U.S. had no intention of fighting Russia as he said the sanctions, among others things, target Russian banks and sovereign debt. Britain published a list of sanctions and Germany froze the Nord Stream 2 Baltic Sea gas pipeline project, which would have significantly increased the flow of Russian gas.
Market Views
- Asia Pacific stocks rose on Wednesday morning despite geopolitical risks from the Russia-Ukraine tensions cast a shadow on the markets. Hang Seng index gained 151 points while Japan is closed for a holiday today.
- The Reserve Bank of New Zealand announced its third consecutive rate hike on Wednesday, lifting its benchmark cash rate by 25 basis points to 1%, as expected, but surprising investors with a hawkish tone.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @ 34,700
Last: 33,722
Target price: 35,500
Protective stop: 34,100 Triggered.
Outlook
Price has been on a decline after violating the 20EMA support. The 20EMA is falling, suggesting the bearish price trend. This index is currently near to its previous low support and a Doji candlestick was seen last night. Stochastic is at the oversold region and MACD could be giving potential divergence warning. We could see price rebounding from this low towards the 20EMA at 34,630.
Trading Idea
Buy 34,700 with a stop below 34,100 for 35,650. Entry order was filled on 14 Feb. Stop was triggered on 18 Feb.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 24,250
Last: 23,678
Target price: 25,250
Protective stop: 23,950
Outlook
This index is currently trading at its resistance-turned-support zone for the third occasions. Price could form a potential Bullish Harami candlestick pattern, and we would like to see a close above 23,782 for a reversal confirmation. Stochastic is falling and MACD has turned bearish
Trading Idea
Buy 24,250 for 25,250 with a stop below 23,950. Entry was filled on 21 Feb. Stop was triggered on 22 Feb.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,959
Target price:
Protective stop:
Outlook
This index remains bearish as it has been capped by the falling 20EMA which is acting as resistance currently. Price is trading at its previous low support zone. Stochastic is at the oversold region and MACD could be giving a potential divergence warning. A close above 13,960 would likely see a price rebound towards the 20EMA at 14,440
Trading Idea
Buy 13,850 for 14,400 with a stop below 13,550.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation: Long @ 4365
Last: 4325
Target price:4480
Protective stop:4320 Triggered
Outlook
Price has been on a decline after being capped by the Fibonacci 62% correction point of Jan-Feb 2022’s rally. It is currently trading at its previous low support zone. Price could form a potential Piercing Line candlestick pattern and we would like to see a close above 4329 for a reversal confirmation towards the 20EMA at 4432. Stochastic is at the oversold region and MACD could be giving potential divergence warning.
Trading Idea
Buy 4365 for 4480 with a stop below 4320. Entry and stop were triggered on 21 Feb
