Market News
- U.S. stocks were mixed on Tuesday ahead of inflation and other economic data that could shed light on the possible timing of a Fed interest rate cut. Dow Jones fell 96 points while Nasdaq Composite rose 59 points and S&P 500 was up 8 points.
- The petition, whose first hearing is scheduled for mid-May, puts Country Garden squarely in the center of a deepening property crisis in China, as the sector struggles with worsening sales and a broader loss of faith among Chinese consumers.
- Kansas City Fed Bank President used a debut speech on policy to signal that he remains focused on the threat of high inflation and is in no rush to cut rates. Fed Governor Michelle Bowman said she is in no hurry to cut rates, given upside risks to inflation that could stall progress or even cause price pressures to resurge.
Market Views
- Most Asian stocks kept to a tight range on Wednesday amid persistent caution over higher-for-longer U.S. interest rates, with Japanese indexes pulling back from record highs as a tech-driven rally cooled. Hang Seng index slid 44 points while Nikkei 225 index was up 5 points.
- Sticky inflation could push the BOJ into raising interest rates by as soon as April, bringing an end to the ultra-dovish, low interest rate regime enjoyed by Japanese markets for nearly a decade.
Dow Jones Index
(CFD Symbol: US30)
Trend:
Recommendation:
Last: 38,932
Target price:
Protective stop:
Outlook
Price has been forming higher highs and higher lows, showing the bullish price trend. It is currently undergoing a price correction and we are likely to see price rebound from the resistance-turned-support zone at 38,800. MACD remains bullish.
Trading Idea
Buy 38,815 for 39,200 with a stop below 38,700
Hang Seng Index
(CFD Symbol: HK50)
Trend:
Recommendation: Long @ 16,450
Last: 16,731
Target price: 17,100
Protective stop: 16,530 triggered
Outlook
Price broke and closed above the triangle pattern that formed since Jan 2024. The 20EMA is rising, showing the current uptrend. This index is likely to rebound from the support zone of 16,450 to move higher. MACD remains bullish.
Trading Idea
Buy 16,450 for 17,100 with a stop below 15,990. Entry was filled on 21 Feb. Shift stop higher to 16,530 to break even. Hit break even on 27 Feb
Nasdaq 100 Index
(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 17,956
Target price:
Protective stop:
Outlook
Price rebounded strongly from 17,330 support zone. It could be consolidating within a pennant pattern, which is one of the continuation patterns. The 20EMA is acting as support. MACD remains bullish and Stochastic is rising. We are likely to see price continuing to move higher.
Trading Idea
Buy 17,870 for 18,000 with a stop below 17,780
DAX Index
(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 17,575
Target price:
Protective stop:
Outlook
Price further broke out a flag pattern and has created a new high at 17,585. MACD remains bullish with both of its lines far above the zero line. Stochastic is bullish too. We are likely to see price rebounding from the 20EMA support.
Trading Idea
Buy 17,450 for 17,580 with a stop below 17,400
