Market News
- Wall Street’s main indexes closed lower on the first trading day of 2023 with the biggest drags from Tesla and Apple, while investors worried about the Federal Reserve’s interest-rate hiking path as they awaited minutes from its December meeting.
- Investors will closely monitor the minutes of the Fed’s December policy meeting, when the central bank raised interest rates by 50 basis points after four straight 75 basis points hikes and signaled rates could stay higher for longer.
- The price of Brent oil will fall to the lower end of $70 a barrel by year’s end and expect demand for oil to be kept low due to a prolonged recession in China, according to Citi’s global head of commodities research, as a number of oil producing countries are facing extreme difficulties
Market Views
- Markets in the Asia-Pacific traded mixed on Wednesday morning to commence the first trading week for the year. Hang Seng index jumped 409 points while Nikkei 225 index dropped 369 points.
- China’s factory activity slid further into contraction territory in December. The Caixin/Markit manufacturing purchasing managers’ index fell further to 49 in December after recording 49.4 in November – remaining below the 50-point mark that separates growth and contraction.
(CFD Symbol: US30)
Dow Jones Index
Trend:
Recommendation:
Last: 33,090
Target price:
Protective stop:
Outlook
Price was capped by the Fibonacci 38% correction point, which is also the support-turned-resistance price level. The 20EMA is acting as resistance as well. A violation of 32,774 will likely to bring price lower to 32,360.
Trading Idea
Sell 33,350 for 32,400 with a stop above 33,850.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 20,583
Target price:
Protective stop:
Outlook
This index is strong and bullish as price is moving higher along with the rising 20EMA support. As long as price moves above the 20EMA, we see price moving higher to the weekly resistance of 22,845. Stochastic is rising and there is a bullish MACD crossover.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 10,871
Target price:
Protective stop:
Outlook
Nasdaq is very bearish with the 20EMA acting as the first resistance point at 11,140. It is trading near to the triple bottom support zone, but it has to penetrate above the 20EMA to move higher. Stochastic is at the oversold zone and MACD is bearish.
Trading Idea
Sell 11,100 for 10,700 with a stop above 11,300.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7565
Target price:
Protective stop:
Outlook
Price rebounded after being supported by the 20EMA support. However, there is a previous price high resistance that capped price rally twice. We are likely to see price testing this price resistance for a third time, and a correction to follow thereafter if price unable to penetrate the resistance.
Trading Idea
Wait for better trading idea.
