Category: CFD Indices

CFD Indices – Wall Street Closed Higher On Better Risk Sentiment.

Shueh Ting Wong

Market News

  • Wall Street closed higher on Thursday after the Fed’s rate hike, Fed Chair Jerome Powell’s subsequent Q&A session and Yellen’s testimony before Congress in which she ruled out blanket protection for all deposits.
  • U.K. inflation came in hotter-than-expected on Wednesday; though some analysts have said this was due to exceptional incidents such as a fresh vegetable shortage and that energy prices are down on average versus last year.
  • The Swiss National Bank on Thursday morning announced it would raise its benchmark interest rate by 50 basis points, taking it to 1.5%.

Market Views

  • Asian markets were fell on Friday morning, as investors weigh remarks from U.S. Treasury Secretary Janet Yellen, who said federal emergency actions to back up failed regional banks could be used again if necessary. Hang Seng index dropped 125 points and Nikkei 225 index fell 76 points.
  • Japan’s factory activity for March has risen slightly, but still remained in contraction territory for the fifth straight month. However, Japan’s core inflation reading fell from its January peak of 4.2% to 3.1% year-on-year in February, government data showed Friday.



Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation: Short @ 32,500

Last: 32,044

Target price: 31,600

Protective stop: 32,600

Outlook
This index is having a price correction after hitting the 20EMA resistance point, which is also the support-turned-resistance zone. It slightly rebounded from the Fibonacci 62% correction point and if this support holds, we see price penetrating this resistance to move higher.

Trading Idea
Sell 32,500 with a stop above 32,800 for 31,600. Entry order was filled on 21 Mar. Lower stop to 32,600 on 24 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 testing the 20EMA and we could see a minor correction before it resume its upward strength again. Stochastic is rising and MACD is giving divergence warning.

Trading Idea.
Buy 19,600 for 20,500 with a stop below 18,950.


Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 12,696

Target price:

Protective stop:

Outlook
Price was capped by its previous price high resistance for four occasions. With Stochastic at the overbought region, we are likely to see price retracing to the 20EMA at 12,380. MACD remains bullish at the moment.

Trading Idea
Sell 12,850 with a stop above 13,010 for 12,400.



FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7449

Target price:

Protective stop:

Outlook
This index corrected after being capped by its support-turned-resistance zone, coinciding with the 20EMA and the Fibonacci 38% correction point. Price could rebound from 7350-7395 and to penetrate this resistance zone to move higher.

Trading Idea
Wait for better trading idea.


CFD Indices – Wall Street Advance As Fears Over Banking Sector Abated.

Shueh Ting Wong

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.


CFD Indices – Wall Street Indices Recovered On Credit Suisse Recuse Plan.

Shueh Ting Wong

Market News

  • A strong rebound by financials helped Wall Street’s main indexes close firmly positive on Thursday, after some of U.S. largest lenders confirmed they would deposit up to $30 billion into First Republic Bank’s coffers to stabilize the lender.
  • The latest twist in the U.S. regional banks saga came on the heels of a 50 basis point rate hike by the European Central Bank, which earlier in the day had dampened investor sentiment already hurt by fears of a banking crisis.
  • U.S. Treasury Secretary Yellen said the U.S. banking system remains sound and Americans can feel confident that their deposits will be there when needed. U.S.-listed shares of Credit Suisse advanced after the bank secured a credit line of up to $54 billion from the Swiss National Bank to shore up liquidity and investor confidence.

Market Views

  • Asia-Pacific markets were higher on Friday morning after major Wall Street banks pledged a deposit of $30 billion in First Republic Bank in an attempt to bolster confidence in the banking system. Hang Seng index rose 364 points and Nikkei 225 index gained 206 points.
  • The Japan Center for Economic Research said that the consensus forecast for the economy’s wage growth in 2023 was raised to 3.05% in March from an expected rise of 2.85% seen in January.



Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 32,167

Target price:

Protective stop:

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.


Nikkei 225 Index
(CFD Symbol: JP225)

Trend:

Recommendation:

Last: 27,216

Target price:

Protective stop:

Outlook
This index rebounded after reaching a temporary low at 26,458. Price is likely to test the 20EMA at 27,550, which is also near to the Fibonacci 50% correction point. Stochastic could be rising from oversold zone but MACD remains bearish.

Trading Idea.
Wait for better trading idea.


Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation: Long @ 12,000

Last: 12,206

Target price: 12,500 Filled

Protective stop: 11,800

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
Buy 12,000 for 12,500 with a stop below 11,800. Entry order was filled on 15 Mar. Profit order was filled on 16 Mar.



FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7454

Target price:

Protective stop:

Outlook
This index rebounded after creating a temporary bottom at 7316. 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.


CFD Indices – Wall Street Bounced Back On Softer Inflation Data

Shueh Ting Wong

Market News

  • U.S. stocks bounced back on Tuesday as largely on-target inflation data and easing jitters over contagion in the banking sector cooled expectations regarding the size of the rate hike at the Fed’s policy meeting next week.
  • The Labour Department’s CPI report showed consumer prices cooled in February with headline and core measures notching welcome annual declines. Signs of economic softness, combined with the regional banking scare, have increased the odds that Fed will implement a 25 basis-point hike.
  • Shock waves following the closure of Silicon Valley Bank and Signature Bank, which prompted Biden to vow he would contain the crisis and ensure the safety of the U.S. banking system, continued to reverberate throughout the sector.

Market Views

  • Asia-Pacific markets rose on Wednesday morning after bank stocks on Wall Street rebounded on optimism of contagion risk from Silicon Valley Bank being contained. Hang Seng index rose 384 points and Nikkei 225 index gained 75 points.
  • China’s industrial output rose 2.4% in the January to February period, official data showed. Economists polled by Reuters had expected to see a rise of 2.6%. Retail sales rose 3.5% for the same period, in line with expectations.



Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 32,124

Target price:

Protective stop:

Outlook
Price rebounded last night after reaching a price low of 31,435. We could see a price rebound to test its support-turned-resistance zone which is also the Fibonacci 50% correction point at 32,500. Stochastic is at the oversold zone and MACD is bearish


Trading Idea
Wait for better trading idea


DAX Index
(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 15,235

Target price:

Protective stop:

Outlook
This index rebounded from its previous low support zone of 14,883. We are likely to see price testing 15,295, which is the Fibonacci 50% correction point and the 20EMA. Stochastic is falling and MACD is bearish

Trading Idea.
Wait for better trading idea.


Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 12,206

Target price:

Protective stop:

Outlook
Price rebounded after reaching its previous price low support zone. A spinning top candlestick pattern was formed and a bullish candle was followed through. We are likely to see price rebounding to 12,466 and a penetration of this resistance will target for 12,890.

Trading Idea
Buy 12,000 for 12,500 with a stop below 11,800.



FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7634

Target price:

Protective stop:

Outlook

This index has reached its head and shoulder one to one price target, which is also the resistance-turned-support zone. Stochastic is at the oversold zone. Price could have a price rebound to 7792. MACD remains bearish.

Trading Idea
Wait for better trading idea.


CFD Indices – Wall Street Indexes Plunged On Powell’s Testimony.

Shueh Ting Wong

Market News

  • U.S. stock indexes plunged on Tuesday after Fed Chair Jerome Powell told Congress the central bank will likely need to raise interest rates more than previously expected as it seeks to rein in stubbornly high inflation.
  • Powell, who will testify again on Wednesday before the House of Representatives Financial Services Committee, also added that the Fed would not consider changing its 2% inflation target and the job market does not suggest an economic downturn is close. Data of nonfarm payroll additions for February will also be closely watched.
  • China saw its exports fall by 6.8% in February, declining less than expectations of a 9.4% drop, according to economists surveyed by Reuters. The drop was also less than the previous month’s fall of 9.9%.

Market Views

  • Asian markets were mixed on Wednesday morning as traders looked ahead to Fed Chair Jerome Powell’s congressional testimony on Tuesday and Wednesday, which will inform the central bank’s next moves on its rate-hiking decision. Hang Seng index slid 535 points while Nikkei 225 index rose 61 points.
  • The Reserve Bank of Australia raised its cash rate by 25 basis points to carry the risk of plunging the economy into a recession. Commonwealth Bank of Australia’s Gareth Aird expected one further 25bp rate hike to be delivered at the April Board meeting, for a peak in the cash rate of 3.85%.



Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 32,840

Target price:

Protective stop:

Outlook
Price plunged below the 20EMA last night with a huge bearish candle after being resisted by the Fibonacci 50% correction point. We could see price testing its support zone at 32,485 again. Stochastic is weak and MACD is bearish.


Trading Idea
Wait for better trading idea


DAX Index
(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 15,511

Target price:

Protective stop:

Outlook
This index created a new high at 15,706 yesterday before closing with a bearish candle. We could see price moving lower to its support zone at 15,180. Stochastic could be falling soon. MACD is bullish but has been giving divergence warnings.


Trading Idea.
Wait for better trading idea.


Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation: Short @ 12,120

Last: 12,133

Target price: 11,750

Protective stop: 12,300 Triggered

Outlook
Price fell sharply following a shooting star candlestick pattern last night after being capped by the Fibonacci 62% correction point. Stochastic is weak and MACD is bearish. We could see price testing 11,230 if it violates 11,800.

Trading Idea
Sell 12,120 for 11,750 with a stop above 12,300. Entry and stop was triggered on 6 Mar.



FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7894

Target price:

Protective stop:

Outlook
This index could have formed a potential head and shoulder reversal chart pattern. It is currently testing its key neckline and once this neckline is broken, we are likely to see price moving lower to 7616. Stochastic is weak and MACD is moving lower.

Trading Idea
Sell 7915 for 7835 with a stop above 7970