Market News
- U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo.
- Yields on the U.S. 30-year note rose after the Treasury Department saw weak demand for a $21 billion sale, the final sale of $96 billion in coupon-bearing supply this week. In a note to clients, Jefferies said “the buy side bid failed to come together.”
- Australia’s central bank on Friday said inflation remains high and hinted at further interest rates hikes. This comes after the Reserve Bank of Australia raised interest rates by 25 basis points on Tuesday, bringing its cash rate to a 10-year high of 3.35%.
Market Views
- Asia-Pacific markets were mixed on Friday morning, following moves on Wall Street as China’s inflation data came in lower than expected. Hang Seng index plunged 393 points while Nikkei 225 index rose 138 points.
- China’s consumer prices rose 2.1% in January compared to a year ago, marking the fastest pace in three months, government data showed. The reading comes in lower than estimates forecasted by economists in a Reuters poll that had expected to see a 2.2% rise in prices.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,626
Target price:
Protective stop:
Outlook
Price could be moving within a triangle pattern. It is retracing from the upper trendline resistance and we are likely to see this index testing the lower trendline support at 33,275. Stochastic is falling and MACD has turned bearish.
Trading Idea
Sell 33,950 for 33,300 with a stop above 34,300.
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 15,397
Target price:
Protective stop:
Outlook
This index formed a Doji reversal candlestick pattern yesterday after testing its previous price high resistance zone. There was a bearish candle follow-through. This could be a sign of price correction and we are likely to see price testing the 20EMA at 15,194. Stochastic is falling and MACD is giving potential divergence warning
Trading Idea.
Sell 15,500 with a stop above 15,700 for 15,200.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,335
Target price:
Protective stop:
Outlook
Price has been undergone a price correction after trading near to its resistance zone. We are likely to see price testing the 20EMA support at 12,105. Stochastic is falling and MACD has a bearish crossover.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7887
Target price:
Protective stop:
Outlook
Price formed a Shooting Star candlestick pattern after a Doji candlestick pattern the day before. We are likely to see a price correction that bring price lower to the 20EMA at 7807. Stochastic is falling and MACD is giving potential divergence warning.
Trading Idea
Wait for better trading idea.
