Market News
- U.S. stocks ended lower on Tuesday, with the Nasdaq showing the largest declines as chipmaker Nvidia stumbled ahead of its highly awaited earnings report, while gains in Walmart kept losses on the Dow Industrials in check.
- Investors are concerned whether Nvidia’s quarterly results, expected after markets close on Wednesday, will justify its expensive valuation, currently at a forward price-to-earnings ratio of just over 32, and continue to fuel the buying frenzy around artificial intelligence (AI) related stocks.
- Walmart closed at a record high and was the best performer on the Dow Industrials after the U.S. retail giant forecast fiscal 2025 sales largely above Wall Street expectations and raised its annual dividend by 9%.
Market Views
- Asian stocks were mixed on Wednesday, tracking overnight weakness in Wall Street as risk sentiment wavered ahead of more cues from Fed and key earnings from artificial intelligence giant NVIDIA. Hang Seng index gained 488 points while Nikkei 225 index fell 127 points.
- Chinese markets, however, saw extended gains as they recovered further from five-year lows. A bigger-than-expected interest rate cut by the People’s Bank of China on Tuesday also appeared to be lending some support.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation: Short @ 38,600
Last: 38,528
Target price: 38,260
Protective stop: 38,700 triggered
Outlook
Price is currently hovering around the 20EMA. MACD remains bullish and there is a bullish Stochastic crossover. We could see price rebounding to retest 38,800 resistance zone again in the coming session.
Trading Idea
Sell 38,600 for 38,260 with a stop above 38,700. Entry and stop were filled on 15 Feb
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation:
Last: 16,723
Target price:
Protective stop:
Outlook
Price broke out from a triangle pattern today with a bullish candle, hinting at more upside ahead. MACD is bullish and is rising higher. Stochastic is moving higher after a bullish crossover too. We are likely to see price retesting the support zone at 16,450 before the next rally.
Trading Idea
Buy 16,450 for 17,100 with a stop below 15,990
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 17,495
Target price:
Protective stop:
Outlook
Price managed to form a rejection candle at its previous low support zone. A bullish engulfing candlestick pattern was formed last night too. We are likely to see price rebounding from this support zone to test its resistance zone at 17,710
Trading Idea
Buy 17,430 for 17,710 with a stop below 17,350
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation: Short @ 16,940
Last: 17,066
Target price: 16,800
Protective stop: 16,980
Outlook
Price is currently supported by its resistance-turned-support zone, coinciding with the rising 20EMA. MACD is still bullish and there is a bullish Stochastic crossover. We are likely to see price rebounding from this support zone to move higher.
Trading Idea
Sell 16,940 for 16,800 with a stop above 16,980. Entry and stop were filled on 14 Feb
