Market News
- U.S. stocks ended solidly higher on Tuesday, led by a 1% gain in the Nasdaq, on relief that Fed Chair Jerome Powell refrained in a speech from commenting on rate policy. Dow Jones rose 186 points, S&P 500 was up 27 points and Nasdaq Composite gained 106 points.
- The World Bank on Tuesday slashed its 2023 growth forecasts on Tuesday to levels teetering on the brink of recession for many countries as the impact of central bank rate hikes intensifies. Investors are hoping for signs that the Fed may soon take a break after raising the federal funds rate seven times in 2022.
- Australia consumer price index rose 7.3% year-on-year in November, in line with Reuters’ expectations, and higher than last month’s reading of 6.9%. This is a sign that inflationary pressures have yet to slow with housing; food and transport were amongst the top components fuelling the hike.
Market Views
- Asia-Pacific shares were higher on Wednesday morning as investors looked ahead to the U.S. consumer price index, which would set the Fed’s trajectory in its attempt to tackle inflation after raising rates seven times in 2022. Hang Seng index rose 294 points and Nikkei 225 index gained 269 points.
- South Korea’s unemployment rate for December climbed 3.3%, marking the highest in 11 months, government data. It is higher compared to November’s figure of 2.9%.
(CFD Symbol: US30)
Dow Jones Index
Trend:
Recommendation: Short @ 33,350
Last: 33,692
Target price: 32,400
Protective stop: 33,850 Triggered
Outlook
Price managed to rebound from the 20EMA support, which is also near to the resistance-turned-support price zone. As long as this index stays above 20EMA, we see price testing 34,000. Stochastic is near to the overbought zone and MACD is bullish.
Trading Idea
Sell 33,350 for 32,400 with a stop above 33,850. Entry position was filled on 4 Jan. Stop was triggered on 9 Jan.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 26,417
Target price:
Protective stop:
Outlook
This index rebounded from its previous low support zone. It was capped by the 20EMA resistance point, where the Fibonacci 38% correction point comes in at 26,630 as well. Price has to penetrate this resistance for 27,270. Stochastic is rising. MACD is bearish but there is potential divergence warning.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 11,000
Last: 11,191
Target price: 10,650
Protective stop: 11,200 Triggered
Outlook
This index rebounded from the previous low support zone that successfully supported price’s decline for the past fourth occasions. It is likely to test its overhead resistance at 11,440. Stochastic is rising and MACD is bullish.
Trading Idea
Sell 11,000 for 10,650 with a stop above 11,200. Entry and Stop order were triggered on 9 Jan.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7727
Target price:
Protective stop:
Outlook
Price broke and closed above its previous price high resistance with a strong bullish candle. As long as it stays above 7616, we see price moving higher to 7800. Stochastic is rising and MACD is bullish
Trading Idea
Wait for better trading idea.
