Market News
- S&P 500 ended nominally lower on Tuesday at the close of a rocky session marked by a raft of mixed earnings and a technical malfunction at the opening bell. Dow Jones gained 104 points while the Nasdaq Composite fell 30 points.
- More than 80 stocks of NYSE-listed stocks were halted at the top of the session due to an apparent technical malfunction, which caused initial price confusion and prompted an investigation by the U.S. Securities and Exchange Commission
- Inflation in Australia rose to a new 32-year high of 7.8% in the final quarter of the fiscal year of 2022, marking the fastest pace since March 1990. The annualized figure of a rise in consumer prices was backed by higher prices in food, automotive fuel, and new residential construction.
Market Views
- Asia-Pacific shares rose on Wednesday morning, taking the lead from Wall Street’s struggle for direction as China and Hong Kong markets remain closed for the Lunar New Year holidays. Nikkei 225 index was up 30 points.
- National Australia Bank’s monthly business survey showed worsened business conditions for December with a reading of 12 points, a decline from November’s print of 20 points, reflecting deteriorated trading conditions, profitability, and employment.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,629
Target price:
Protective stop:
Outlook
Price rebounded from the rising trendline support but this rebound could be short-lived as it is capped by the Fibonacci 62% correction point. Stochastic is still weak and MACD remains bearish. Price is likely to break down this trendline support to move lower.
Trading Idea
Wait for better trading idea.
Nikkei 225 Index
(CFD Symbol: JP225)
Trend:
Recommendation:
Last: 27,352
Target price:
Protective stop:
Outlook
This index has turned its chart outlook to bullish as it broke out a double bottom chart pattern. It will be a good entry if price retraces to the 20EMA support at 26,630, which is also the resistance-turned-support level. Stochastic is rising and MACD is bullish.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 11,755
Target price:
Protective stop:
Outlook
Price is on a decline after forming a hanging man candlestick pattern last night. We are likely to see price testing the 20EMA at 11,445 in the next few days. Stochastic is at the overbought region. MACD is bullish but the histogram is giving potential divergence warning.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7761
Target price:
Protective stop:
Outlook
Price was capped by the Fibonacci 62% correction point. We are likely to see price violating the 20EMA support to move lower to the next support zone at 7585-7616. However, if this index can stay above the 20EMA, it can rebound back to the previous high again. Stochastic is falling but MACD remains bullish.
Trading Idea
Buy 7720 for 7860 with a stop below 7650.
