Market News
- Wall Street ended a topsy-turvy Thursday in positive territory, with the S&P 500 snapping a four-session losing streak, as investors grappled with how interest rate policy might affect the U.S. economy. Nasdaq Composite gained 83 points.
- On Thursday, the Labour Department said the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, reflecting tight labour market conditions. A separate report confirmed the economy grew solidly in the fourth quarter.
- Japan’s nationwide consumer price index rose 4.2% compared to a year ago in January, in line with expectations of economists surveyed by Reuters. The economy’s core CPI excluding fresh food and energy prices rose 3.2%, data showed, as overall CPI rose 4.3% year on year.
Market Views
- Asian markets traded mixed on Friday morning as the nominee to lead the Bank of Japan Kazuo Ueda spoke at a confirmation hearing. Hang Seng index dropped 268 points while Nikkei 225 index gained 300 points.
- Bank of Japan governor nominee Kazuo Ueda has expressed support for the current monetary policy. He said the current strategy is appropriate despite numerous side effects, commenting on the central bank’s ultra-dovish monetary policy.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 33,125
Target price:
Protective stop:
Outlook
Price formed a shooting star candlestick pattern near to its support zone. This may be a hint that price could retest the 20EMA at 33,590. Stochastic is at the oversold zone and MACD is bearish.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation: Short @ 15,500
Last: 15,533
Target price: 15,200
Protective stop: 15,700
Outlook
This index rebounded after being supported by the 20EMA support. As long as price stay above the 20EMA, we see price testing its previous high at 15,656. A violation of the 20EMA will hint for further price decline. Stochastic is falling. MACD is still bullish but is giving potential divergence warning
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: 12,152
Target price:
Protective stop:
Outlook
Price was resisted by the 20EMA which is acting as resistance at the moment. As long as price moves below the 20EMA, we are likely to see price falling to 11,510. Stochastic is near to the oversold zone and MACD is bearish.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7941
Target price:
Protective stop:
Outlook
The price decline appears to halt at the 20EMA which is acting as support currently. As long as price moves above the 20EMA, we see price testing its high at 8044 again. Stochastic is still strong and bullish. MACD remains bullish as well.
Trading Idea
Wait for better trading idea.
