Market News
- Wall Street stocks ended mixed on Tuesday after U.S. consumer price data for January offered little to change expectations about the Fed’s path forward on interest rate hikes. The Dow fell 156 points; S&P 500 dropped 1 point while Nasdaq Composite rose 68 points.
- U.S. consumer prices accelerated as Americans continued to be burdened by higher rental housing costs, suggesting that the Fed will maintain its fight against inflation. Inflation remains elevated, albeit it appears to be slowing.
- China’s central bank has kept its interest rates unchanged at 2.75% on 499 billion yuan of one-year medium-term lending facility loans. People’s Bank of China said this was to keep the liquidity of the banking system adequate at a reasonable level.
Market Views
- Asian markets sank on Wednesday morning after stronger-than-expected U.S. inflation readings ramped up fears of more hawkish moves from the Fed, with regional technology stocks bearing the brunt of losses. Hang Seng index dropped 272 points and Nikkei 225 index fell 117 points.
- Shares of Australian banks fell as Reserve Bank of Australia governor Philip Lowe highlighted inflation remains at elevated levels, speaking at the Senate Economics Legislation Committee.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 33,950
Last: 33,948
Target price: 33,300
Protective stop: 34,300 Triggered
Outlook
Price could be moving within a triangle pattern. It hit the upper downtrend resistance line and we are likely to see price testing the lower rising trendline support at 33,300. Stochastic is falling while MACD remains bullish.
Trading Idea
Sell 33,950 for 33,300 with a stop above 34,300. Entry order was filled on 13 Feb. Stop was triggered on 14 Feb.
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation: Short @ 15,500
Last: 15,378
Target price: 15,200
Protective stop: 15,700
Outlook
This index formed a Doji reversal candlestick pattern on 9 Feb after testing its previous price high resistance zone. As long as the Doji high is not penetrated, we are likely to see price falling to 14,900. Stochastic is falling and MACD has a bearish crossover.
Trading Idea.
Sell 15,500 with a stop above 15,700 for 15,200. Entry order was filled on 14 Feb.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,511
Target price:
Protective stop:
Outlook
Price rebounded after being supported by the rising 20EMA support. However, it has to penetrate above 12,633 for a test of its high at 12,891. A violation of 20EMA will hint for deeper correction. Stochastic is falling while MACD is still bullish.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7955
Target price:
Protective stop:
Outlook
Price created a new high at 8004 yesterday. It has to further penetrate this high for further upside; else, a correction to the 20EMA at 7850 is likely. Stochastic is at the overbought region and MACD remains bullish.
Trading Idea
Wait for better trading idea.
