Market News
- U.S. major indexes advanced more than 1% on Thursday as investors considered the Fed’s path for interest rate hikes and worries eased about the prospects of a Russian default after creditors received payments.
- Investors were reassured that Russia may, at least for now, have averted what would have been its first external bond default in a century. This was because creditors received payment, in dollars, of Russian bond coupons which fell due this week, two market sources told Reuters on Thursday.
- The Fed had raised interest rates by a quarter of a percentage point on Wednesday as expected and forecast an aggressive plan for further hikes while policymakers also trimmed economic growth projections for the year.
Market Views
- Asia Pacific stocks were mixed on Friday morning, with a rally in Chinese shares in the U.S. cooling. Investors continue digesting mixed signals on peace talks to end the conflict in Ukraine. Hang Seng index slid 522 points while Nikkei 225 index rose 30 points.
- President Joe Biden will discuss the situation in Ukraine with Chinese counterpart Xi Jinping later in the day. Biden will warn of “costs” if China backs Russia, according to U.S. Secretary of State Antony Blinken.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Long @32,710
Last: 34,285
Target price: 33,740 Filled
Protective stop: 32,540
Outlook
This index resumed its advanced after forming a Rising Three Methods candlestick pattern, which is one of the continuation patterns. It moved above the rising 20EMA and penetrated above its recent price high resistance. Both Stochastic and MACD are rising and bullish and are hinting at a bullish price trend.
Trading Idea
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. Profit target was filled on 16 Mar.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,986
Target price:
Protective stop:
Outlook
This index rebounded strongly after forming a morning star candlestick price pattern four days ago. It is currently testing the overhead 20EMA which is acting as resistance at the moment. A possible pullback may occur as price may take a rest before breaking above the 20EMA for a further rally.
Trading Idea
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 13,992
Target price:
Protective stop:
Outlook
Price could have formed a base low at 12,945 as it has tested this support zone for third occasions. If price can maintain above the 20EMA at 13,850, we are likely to see more rally ahead. Stochastic and MACD are bullish and are rising.
Trading Idea
Buy 13,550 with a stop below 13,250 for 14,200.
S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 4382
Target price:
Protective stop:
Outlook
Price has formed a base low at 4106 as it has tested this support zone on three occasions. It moved above the 20EMA and if it able to maintain above the 20EMA and penetrate above its recent price high, we could see more upside towards 4580. Both Stochastic and MACD are bullish.
Trading Idea
Wait for better trading idea.
