Market News
- Wall Street’s ended lower on Thursday, with the Nasdaq dropping more than 2%, as investors reacted to Fed officials including Chair Jerome Powell offering further signposting of aggressive interest rate hikes this year.
- A half-point interest rate increase will be “on the table” when the U.S. central bank meets on May 3-4 to approve the next in what is expected to be a series of rate increases this year, Powell said.
- Earlier on Thursday, San Francisco Fed President Mary Daly said she supports raising the U.S. central bank’s target for overnight borrowing costs to 2.5% by the end of this year, but whether or how much further it will need to rise will depend on what happens with inflation and labour markets.
Market Views
- Asian stocks dropped on Friday morning, with U.S. Fed Chair Jerome Powell toughening his stance on inflation. Investors are now bracing for more aggressive monetary policy tightening. Hang Seng index fell 143 points and Nikkei 225 index slid 506 points.
- The China Securities Regulatory Commission said in a statement that it held a meeting Thursday with institutional investors including the National Social Security Fund, banks, and insurers, where it asked them to increase their equity investments.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,670
Target price:
Protective stop:
Outlook
Price retraced after hitting its recent price high resistance zone. It is currently sitting at 20EMA support at 34,620 and if price further violates this support, we see price moving lower towards 34,100. Stochastic is weak and MACD has given divergence warning
Trading Idea
Sell 34,860 for 34,180 with a stop above 35,150.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,558
Target price:
Protective stop:
Outlook
Price appears to rebound as it hit the Fibonacci 50% correction point. The 20EMA is falling, suggesting a bearish price trend. MACD is bearish but Stochastic is at the oversold region. These could increase chances of the stock price rebounding to move higher.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Long @ 13,950
Last: 14,109
Target price:14,500
Protective stop:13,700
Outlook
Price was resisted by the 20EMA which is acting as resistance at the moment. The 20EMA is falling, confirming the downtrend. Stochastic is at the oversold region and MACD is bearish. As long as price stays below the 20EMA, price is likely to move lower towards its recent low.
Trading Idea
Buy 13,950 for 14,500 with a stop below 13,700. Entry and Stop was filled on 21 April.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 27,061
Target price:
Protective stop:
Outlook
This index rebounded and hit its Fibonacci 62% resistance point. However, it formed a Shooting Star candlestick pattern at this resistance level. If price moves below the 20EMA, price is likely to retest its recent low again. Stochastic is rising but MACD is bearish.
Trading Idea
Wait for better trading idea
