Market News
- Wall Street closed sharply higher on Tuesday as widespread fears over liquidity in the banking sector abated and market participants eyed the Fed, which is expected to conclude its two-day policy meeting on Wednesday with a 25 basis-point hike to its policy rate.
- Treasury Secretary Janet Yellen, in prepared remarks before the American Bankers Association, said the U.S. banking system has stabilized due to decisive actions from regulators, but warned more action might be required.
- Attention now shifts to the Fed, which has gathered for its two-day monetary policy meeting, at which the members of the FOMC will revisit their economic projections and, in all likelihood, implement another increase to the Fed funds target rate in their ongoing battle against inflation.
Market Views
- Asia-Pacific markets rose on Wednesday morning as investors looked ahead to the U.S. Fed’s latest update on its rate hike decision, as the central bank attempts to balance its inflation fight and stem a banking crisis. Hang Seng index rose 383 points and Nikkei 225 gained 482 points.
- China’s president, Xi Jinping, will wrap up a visit to Russia soon, and analysts argue Beijing will leverage its strong position to make gains from President Vladimir Putin.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 32,500
Last: 32,498
Target price: 31,600
Protective stop: 32,800
Outlook
Price rebounded after reaching a temporary low at 31,147. We are likely to see this index testing the 20EMA at 32,690, which is also the support-turned-resistance zone. Stochastic is rising from the oversold zone but MACD remains bearish.
Trading Idea
Sell 32,500 with a stop above 32,800 for 31,600. Entry order was filled on 21 Mar
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 19,682
Target price:
Protective stop:
Outlook
This index rebounded after reaching a temporary low at 18,810, which is also the Fibonacci 50% correction point of 14,577 to 22,752’s price swing. It is going to test the 20EMA resistance and once it breaks, we are likely to see price testing 21,030. Stochastic is rising and MACD is giving divergence warning.
Trading Idea.
Buy 19,500 for 20,500 with a stop below 18,950.
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,724
Target price:
Protective stop:
Outlook
Price rebounded after reaching its previous price low support zone. It moved above the 20EMA and we are likely to see price testing its previous price high resistance at 12,890. Stochastic is rising and MACD is bullish.
Trading Idea
Wait for better trading idea.
FTSE 100 Index
(CFD Symbol: UK100)
Trend:
Recommendation:
Last: 7547
Target price:
Protective stop:
Outlook
This index rebounded after creating a temporary bottom at 7202. Price could move higher to the support-turned-resistance zone, which is also the Fibonacci 38% correction point. Stochastic is rising but MACD is bearish.
Trading Idea
Wait for better trading idea.
