Market News
- Nasdaq and S&P 500 ended higher on Thursday and touched roughly five-month highs as a more dovish-than-expected message from Fed Chair boosted equities and Meta Platforms shares soared on rigorous cost controls. However, Dow Jones Index slipped, dragged down by declines in some big healthcare stocks.
- Investors were still digesting the Fed’s policy decision on Wednesday and comments from Powell, who acknowledged progress in the fight against inflation and appeared reluctant to push back against the rally in stocks and bonds.
- Apple projected another revenue decline in the start of the year, Amazon warned that its operating profit could fall to zero in the current quarter, and Google parent Alphabet missed expectations in its fourth-quarter profit and revenue.
Market Views
- Asian markets were mixed on Friday morning as disappointing earnings from U.S. tech giants undermined sentiment ahead of a key U.S. non-farm payrolls report. Hang Seng index slipped 383 points while Nikkei 225 index rose 116 points.
- Travel between mainland China and Hong Kong as well as Macao will fully resume on Feb. 6, China’s Hong Kong and Macao Affairs Office of the State Council said in an announcement.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,015
Target price:
Protective stop:
Outlook
Price could be moving within a triangle pattern. The 20EMA is acting as first layer of support at 33,740. A violation of the 20EMA will hint at the lower rising trendline support. Stochastic is moving lower. MACD is bullish but is forming potential divergence warning
Trading Idea
Wait for better trading idea.
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 21,558
Target price:
Protective stop:
Outlook
This index was capped by the Fibonacci 50% correction point, which is also its previous resistance zone. It is currently retracting to the 20EMA support and once this support breaks, we see further decline to 19,630. Both MACD and Stochastic are falling.
Trading Idea.
Wait for better trading idea.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation: Short @ 12,140
Last: 12,587
Target price: 11,700
Protective stop: 12,300 Triggered
Outlook
Price was capped by its previous price high resistance zone. A possible price retracement to the 20EMA at 11,880 is likely. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Sell 12,140 for 11,700 with a stop above 12,300. Entry and stop were triggered on 1 Feb.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation: Long @ 7720
Last: 7781
Target price: 7860
Protective stop: 7720
Outlook
Price managed to move along with the rising 20EMA which is acting as first layer of support. As long as price stay above the 20EMA, we see price testing its previous price high at 7874. Stochastic is rising and MACD remains bullish
Trading Idea
Buy 7720 for 7860 with a stop below 7650. Entry level was filled on 25 Jan. Lifted stop to break-even at 7720 on 1 Feb.
