Market News
- The three main Wall Street indexes had their best days in over a month on Tuesday, with the Nasdaq advancing 2.2%, as investors responded to positive earnings and dovish comments from two U.S. Fed officials on interest rate rises.
- St. Louis Fed Bank President James Bullard on Monday repeated his case for increasing the rates to 3.5% by the end of the year to slow a 40-year-high inflation. He mentioned he did not rule out a 75 basis points rate hike.
- Bond yields continued their recent moves higher as the 30-year yield exceeded 3% for the first time since April 2019, and the yield on the 10-year Treasury Inflation-Protected Securities turned positive for the first time since March 2020, the start of the coronavirus pandemic
Market Views
- Asia Pacific stocks gained on Wednesday morning despite sovereign bonds continued a selloff as high inflation and hawkish U.S. Fed and China’s COVID-19 outbreak continue to be on investors’ radars. Hang Seng index rose 172 points and Nikkei 225 index was up 182 points.
- Japan’s trade data released earlier in the day showed that exports grew 14.7% year on year and imports grew 31.2% year on year in March 2022. The trade balance contracted to JPY412.4 billion ($3.21 billion) and the adjusted trade balance contracted to JPY900 billion.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,897
Target price:
Protective stop:
Outlook
The price correction was halted at the Fibonacci 38% correction point. Price rebounded and moved above the rising 20EMA. Stochastic is rising from the oversold region and a bullish MACD crossover is likely. These could send price higher to test its previous resistance high.
Trading Idea
Buy 34,180. Stop at 33,850 and profit target at 34,900.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 21,179
Target price:
Protective stop:
Outlook
Price moved below the 20EMA and is currently sitting at the Fibonacci 38% correction point. If price can stay above this support zone, we see price rebounding towards its previous high. Stochastic is at the oversold region and a bullish MACD crossover is likely.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 14,109
Target price:
Protective stop:
Outlook
Price is currently sitting at the Fibonacci 62% correction point. The price correction appears to be over and if price can break above the 20EMA at 14,290, we see price moving higher towards its recent price high. Stochastic is rising from oversold region and MACD is rising.
Trading Idea
Buy 13,950 for 14,500 with a stop below 13,700.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 27,143
Target price:
Protective stop:
Outlook
This index rebounded from the Fibonacci 62% correction point after forming a bullish engulfing candlestick pattern. Stochastic is rising from the oversold region and a bullish MACD crossover is likely. We see price moving higher towards its recent high if it able to maintain above the 20EMA.
Trading Idea
Wait for better trading idea
