Market News
- Dow Jones snapped a four-day winning streak after closing lower on Tuesday, paced by a rout in Goldman Sachs. The Wall Street banking giant fell more than 6% after its fourth-quarter results missed estimates amid rising costs, delivering its worst earnings miss in a decade.
- Big tech was also mostly lower. Microsoft cut gains as Guggenheim downgraded the stock to sell from neutral, on worries that the company’s guidance for the second quarter and the full year may fall short of Wall Street estimates.
- Hong Kong listed gaming stocks rose after China granted license approvals for 88 games, amongst which include NetEase, Tencent Holdings and miHoYo, marking a further easing of Beijing’s gaming crackdown.
Market Views
- Asia-Pacific markets rose in Wednesday morning as investors await the outcome of the Bank of Japan’s monetary policy meeting. Hang Seng index gained 61 points and Nikkei 225 index was up 151 points.
- Japan’s central bank enters its second day of monetary policy discussions, which comes amid high government bond yields and a strong yen with some economists expecting the central bank to scrap its yield curve control policy.
(CFD Symbol: US30)
Dow Jones Index
Trend:
Recommendation:
Last: 33,789
Target price:
Protective stop:
Outlook
Price retraced from its previous price high resistance zone. We are likely to see price moving to the 20EMA at 33,630 before its next directional movement. A rebound from 20EMA will bring price to retest 34,330; else, a further decline is expected. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Buy 33,650 for 34,250 with a stop below 33,250.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation: Short @ 26,400
Last: 26,647
Target price: 25,750
Protective stop: 26,700 Triggered
Outlook
This index is in an attempt to penetrating its recent price high resistance level of 26,633. As long as price closes above this level, we are likely to see price testing 27,670. Stochastic is rising and MACD is moving higher towards its zero line
Trading Idea.
Sell 26,400 for 25,750 with a stop above 26,700. Entry and Stop were filled on 18 Jan.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,552
Target price:
Protective stop:
Outlook
This index managed to penetrate above its support-turned-resistance level for three consecutive days. As long as price stay above 11,411, price could retest its high at 12,120. Else, we could see a price decline to 11,285. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7857
Target price:
Protective stop:
Outlook
Price created a recent price high of 7874. It is currently moving within a tight consolidation zone. A failure move to create a further new high will likely to bring price lower to 7672. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Wait for better trading idea.
