- U.S. major stock indexes rallied on Tuesday, a day before an expected interest rate hike by the U.S. Federal Reserve, while oil prices dropped 7% on hopes of an end to the conflict in Ukraine. Dow Jones surged 599 points, S&P 500 rose 89 points while Nasdaq Composite gained 367 points.
- Investors are expecting the U.S. central bank to raise interest rates for the first time in three years by at least 25 basis points amid surging prices. Details on how Fed plans to end its bond-buying program will be watched closely as well.
- Ukrainian President Volodymyr Zelenskiy said on Wednesday that peace talks were sounding more realistic but more time was needed, even as Russian air strikes continued and the refugee tally from Moscow’s invasion reached 3 million.
- Asian markets rallied on Wednesday morning on a rebound in battered Chinese stocks and ahead of a closely watched Fed’s meeting. Hang Seng index gained 425 points and Nikkei 225 index rose 438 points.
- Oil prices tumbled more than 6% to their lowest in almost three weeks on Tuesday as supply disruption fears eased on Ukraine peace hopes and surging COVID-19 cases in China spurred demand concerns.
Dow Jones Index
(CFD Symbol: US30)
Recommendation: Long @32,710
Target price: 33,740
Protective stop: 32,540
This index resumed its advanced after forming a Rising Three Methods candlestick pattern, which is one of the continuation patterns. Both Stochastic and MACD are giving divergence warning. We are likely to see price penetrating above the 20EMA at 33,580 for more upside ahead.
Buy 32,710 with a stop below 32,230 for 33,740. Entry order was filled on 8 Mar. Shift stop higher to 32,540 on 11 Mar.
Hang Seng Index
(CFD Symbol: HK50)
This index has been diving after violating the neckline of a Double Top chart pattern. There is no sign of recovery yet. Price formed a potential Doji candlestick pattern but we would need to see a confirmation candle to confirm a rebound. Stochastic is at the oversold region but MACD remains bearish.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Price could have formed a base low at 12,945 as it has tested this support zone on three occasions. Both Stochastic and MACD are giving potential divergence warnings. We are likely a price rebound if price can penetrate above the 20EMA at 13,760.
Wait for better trading idea
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4180
Target price:4325 Filled
Price has formed a base low at 4106 as it had tested this support zone on three separate occasions and stayed above the support. We are likely to see price penetrating above the 20EMA at 4297 for more upside ahead. Both Stochastic and MACD are giving divergence warnings of a possible price low.
Buy 4180 with a stop below 4106 for 4325. Entry order was filled on 8 Mar. Shift stop higher to 4150 on 11 Mar. Profit order was filled on 11 Mar.