- Wall Street mostly rose on Thursday as investors snapped up beaten-down shares, while the U.S. dollar advanced to its highest in nearly two years and the U.S. Treasury 10-year yield touched a three-year high following hawkish signals from the Fed.
- St. Louis Fed president James Bullard, a voter this year on the Federal Open Market Committee, said the Fed remains behind in its fight against inflation despite increases in mortgage rates and government bond yields.
- The prospect of sharp Fed rate hikes alongside a reduction in its bond holdings, the ongoing war in Ukraine, and China’s COVID-19 outbreak, with the city of Shanghai topping 21,000 daily cases, are all dampening investor sentiment and risk appetite.
- Asia Pacific stocks were mixed on Friday morning, as investors continue to monitor both the U.S. Fed’s plan to tighten its monetary policy and the latest COVID-19 outbreak in China. Hang Seng index fell 137 points while Nikkei 225 index rose 27 points.
- Oil settled lower, with the International Energy Agency and the U.S. planning to release millions of barrels of crude from strategic reserves and China’s COVID-19 outbreak dampening fuel demand.
Dow Jones Index
(CFD Symbol: US30)
Recommendation: Long @ 34,875
Target price: 35,850
Protective stop: 34,300 Triggered
Price is having a correction after forming an Evening Star candlestick pattern. It is currently hovering around the 20EMA support and if this support holds, we see price rebounding to move higher. A violation of 20EMA will bring price lower and hints for further correction.
Buy 34,875 for 35,850 with a stop below 34,300. Entry order was filled on 31 Mar. Stop was triggered on 6 April.
Hang Seng Index
(CFD Symbol: HK50)
Recommendation: Long @ 22,050
Target price: 23,400
Protective stop: 21,450
Price failed so stay above the gap resistance zone that formed since early March. It is hovering around the 20EMA. If it unable to move above the gap resistance zone, we see a price correction. Stochastic is at overbought region. MACD is bullish but had a bearish crossover.
Buy 22,050 for 23,400 with a stop below 21,450. Entry order was filled on 7 April.
Nasdaq 100 Index
(CFD Symbol: USTec)
Price is hovering around the 20EMA support and if this support holds, we see an end to the correction and price moving higher again. Stochastic is falling but MACD remain bullish.
Wait for better trading idea.
S&P 500 Index
(CFD Symbol: US500)
Recommendation: Long @ 4455
Target price: 4635
Price is having a price correction and is testing the 20EMA support at 4487. If price is able to hold at 20EMA, we see price moving higher towards 4700. Stochastic is falling but MACD is bullish
Buy 4455 with a stop below 4410 for 4635. Entry order was filled on 7 April.