Market News
- U.S. stocks ended sharply up on Thursday, with the S&P 500 closed 41 points higher, approaching record highs as AI optimism drove gains in Nvidia and other chipmakers. Dow Jones jumped 210 points and Nasdaq Composite gained 200 points.
- Atlanta Fed President Raphael Bostic said he was open to reducing rates sooner than he had anticipated if there is “convincing” evidence in coming months that inflation is falling faster than he expected.
- Data on Friday showed Japanese consumer price index (CPI) inflation fell as expected in December, setting the stage for an ultra-dovish Bank of Japan when it meets next week.
Market Views
- Asian stocks were mixed on Friday as a positive, AI-fuelled outlook from TSMC spurred a rebound in the technology sector, although weakness in China and uncertainty over interest rates put most bourses on course for a weekly loss. Hang Seng index fell 16 points while Nikkei 225 index gained 388 points.
- TSMC’s positive outlook spurred increased optimism that a boom in AI will help spur renewed investment into the tech sector, which was reeling from a nearly two-year slump amid high interest rates and stagnating demand for electronics.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 37,430
Target price:
Protective stop:
Outlook
Price rebounded after being supported by its previous low support zone. It is having a price correction currently and we are likely to see price rebounding from 37,360, which coincides with the 20EMA, to move higher. Both MACD and Stochastic are bullish.
Trading Idea
Buy 37,360 for 37,580 with a stop below 37,320
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 15,326
Target price:
Protective stop:
Outlook
Price was capped by its falling 20EMA resistance point, coinciding with the channel resistance that formed since Mar 23. MACD remains bearish and a bearish Stochastic crossover is likely in the coming session.
Trading Idea
Sell 15,440 for 15,080 with a stop above 15,610
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 17,021
Target price:
Protective stop:
Outlook
Price finally broke and closed above the resistance zone after the fourth touch. The 20EMA is rising, suggesting the bullish price trend. Both MACD and Stochastic are bullish too.
Trading Idea
Buy 16,850 for 17,000 with a stop below 16,780
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation: Short @ 16,600
Last: 16,598
Target price: 16,380
Protective stop: 16,660
Outlook
Price retested the support-turned-resistance zone after rebounding from its previous low support zone. MACD is still bullish and Stochastic is at the overbought zone. We are likely to see price moving lower if it unable to penetrate the resistance zone.
Trading Idea
Sell now 16,600 for 16,380 with a stop above 16,660
