Market News
- U.S. stocks closed at fresh highs of the year on Tuesday, after inflation data did little to alter views for the timing of a rate cut by the Federal Reserve, as investors awaited the central bank’s last policy decision of the year on Wednesday.
- November Consumer Price Index (CPI) rose 3.1% on an annual basis, in line with estimates from economists polled by Reuters, as a drop in gasoline prices was overshadowed by a rise in rents. Core prices, excluding volatile items such as food and energy costs, also matched expectations, showing a 4% annual rise.
- Ukraine’s biggest mobile network operator said it hoped to restore operations by Wednesday after coming under what appeared to be the largest cyberattack since Russia launched its war on the country in February 2022.
Market Views
- Asia-Pacific stocks were mixed on Wednesday morning, as investors assess the quarterly Tankan survey from Japan and ahead of the interest rate decision from the U.S. Fed. Hang Seng index dropped 121 points while Nikkei 225 index rose 57 points.
- U.S. crude oil prices on Tuesday dropped more than 3% as traders worries that the Federal Reserve does not yet have inflation under control. Record oil production in the U.S. is colliding with a weakening economy in China, raising concerns that OPEC+ will not be able to stabilize crude prices with its new round of cuts set for the first quarter.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 36,610
Target price:
Protective stop:
Outlook
Price has been rallying without a significant correction since 30 Oct, showing the strong bullish uptrend. It could rebound from 36,270, which is the resistance-turned-support level. Stochastic is at the overbought zone and MACD is bullish.
Trading Idea
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,251
Target price:
Protective stop:
Outlook
This index is currently moving within a falling channel. There is a strong resistance at 16,890, which is also the 20EMA resistance. Stochastic remains weak and bearish and MACD is bearish too. We are likely to see price testing 16,890 before its next decline.
Trading Idea
Wait for better trading idea
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 16,376
Target price:
Protective stop:
Outlook
This index is strong and bullish as price is trading far above the 20EMA. As long as price stays above the 20EMA, price will remains bullish. Stochastic is strong and bullish too and MACD remains bullish.
Trading Idea
Wait for better trading idea
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 16,780
Target price:
Protective stop:
Outlook
Price could be forming a potential head and shoulder reversal chart pattern. The neckline is also coinciding with the 20EMA support at 16,755. A violation of the neckline will confirm the head and shoulder pattern and hint for more downside ahead.
Trading Idea
Sell 16,790 for 16,610 with a stop above 16,850
