Tag: GER40

Market News

• U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq notching their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks while investors sought more clarity on interest rates from Fed.
  
• The benchmark 10-year Treasury note yield was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. Yields extended losses after a solid auction of $48 billion in 3-year notes with auctions of the 10-year note and 30-year bond due later this week.
  
• Expectations that the Fed’s rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.

Market Views

• Asian market were mixed on Wednesday morning as recent comments from Fed officials suggested that the central bank may not be done raising interest rates. Hang Seng index rose 8 points while Nikkei 225 index dropped 213 points.
  
• Confidence among large Japanese manufacturers rose in November, which is the first time that the index improved since August. It measures business sentiment among large Japanese companies.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 34,122

Target price:

Protective stop:

Outlook
Price is currently hovering at the support-turned-resistance zone. This index has been rising continuously since 30 Oct, a correction could be likely before its next rally. Stochastic is at the overbought zone and MACD remains bullish.

Trading Idea
Sell 34,170 for 33,500 with a stop above 34,230

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,661

Target price:

Protective stop:

Outlook
This index is currently moving within a falling channel. It retraced after being capped by its upper channel resistance, and we are likely to see price falling to its lower channel support at 16,840. Stochastic is approaching the overbought zone and MACD is bullish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 15,289

Target price:

Protective stop:

Outlook
Price broke and closed above the falling channel. It was resisted by the previous price high resistance. This index could retrace to the 20EMA at 15,124 before the next rally. Stochastic is at the overbought zone. MACD could be giving potential divergence warning.

Trading Idea
Sell 15,330 for 15,150 with a stop above 15,380

DAX Index
(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 15,121

Target price:

Protective stop:

Outlook
Price rebounded after forming potential bottom at 14,589. It is going to test its upper resistance at 14,930, and once this resistance is penetrated, we see price moving higher to 15,270. Stochastic is rising and MACD has turned bullish.

Trading Idea
Buy 14,935 for 15,240 with a stop below 14,865

Market News

• Wall Street’s main indexes ended Tuesday’s session with gains as investors looked ahead to the Fed’s monetary policy update while they digested a mixed batch of earnings reports.
  
• The Fed kicked off a two-day monetary policy meeting. The central bank is widely expected to hold interest rates steady on Wednesday, and investors will monitor its statement and Fed Chair Jerome Powell’s comments for clues about its plans.
  
• Greg Bassuk, chief executive of AXS Investments in New York, pointed to mixed earnings reports and companies messaging concerns about upcoming quarters with energy prices rising and increasing uncertainty around wars in Israel and Ukraine that are showing no end in sight.

Market Views

• Most Asian stocks moved in a flat-to-low range on Wednesday as weak China data and anticipation of Fed rate decision kept sentiment frail. Hang Seng index rose 6 points while Nikkei 225 index gained 660 points after the Bank of Japan signaled few changes to its ultra-dovish policy.
  
• The BOJ’s decision to only slightly widen its yield curve control policy disappointed traders hoping for a more aggressive move. It also saw markets pricing in a slower pivot away from the bank’s dovish outlook, which points to easy monetary conditions for local stocks.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation: Short @ 32,850

Last: 32,986

Target price: 32,590

Protective stop: 33,030

Outlook
Price rebounded after forming a price low at 32,307. It has moved and closed above the 20EMA. As long as price stay above the 20EMA, which is also the resistance-turned-support zone, we see price moving higher to 33,220 in the near term.

Trading Idea
Sell now 32,850 for 32,590 with a stop above 33,030. Entry and target were filled on 27 Oct

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,084

Target price:

Protective stop:

Outlook
This index is currently moving within a rectangle sideway consolidation zone. It was capped by its falling 20EMA resistance point. A violation of its recent low of 16,871 will hint for deeper correction to 16,100. Stochastic remains weak and MACD is bearish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 14,393

Target price:

Protective stop:

Outlook
Price has been moving within a big falling channel. It is testing the support-turned-resistance zone, which is also the Fibonacci 50% correction point. Price is consolidating within a bearish pennant. A violation of 14,300 will hint for more downside to 14,040.

Trading Idea
Wait for better trading idea

DAX Index
(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 14,848

Target price:

Protective stop:

Outlook
Price rebounded after forming potential bottom at 14,589. It is going to test its upper resistance at 14,930, and once this resistance is penetrated, we see price moving higher to 15,270. Stochastic is rising and MACD has turned bullish.

Trading Idea
Buy 14,765 for 15,100 with a stop below 14,680.

Market News

• All three major indexes slumped on Thursday with Nasdaq Composite fell deeper into correction territory as Meta became the latest tech company to offer a forecast that didn’t quite live up to investors’ expectations.
  
• U.S. GDP expanded by 4.9% annualized in the third quarter, beating a Dow Jones forecast for 4.7% growth. That expansion rate is also up from the 2.1% seen in the second quarter. This is the latest sign of economic resiliency despite the Federal Reserve’s moves to tighten monetary policy to tame inflation.
  
• China’s industrial profits fell in the first nine months from a year earlier, according to data released by the government. Profits at industrial firms shrank by 9% in the January to September period from a year earlier, following an 11.7% profit year on year fall in profits for the first eight months.

Market Views

• Asia-Pacific markets attempted a rebound on Friday morning, with Australia stocks bouncing from a one-year low in the previous session as investors continue to digest more inflation data. Hang Seng index jumped 203 points and Nikkei 225 index rose 471 points.
  
• Australia’s producer prices climbed at a quicker pace during the third quarter. The country’s PPI recorded 1.8% climb quarter-on-quarter, much hotter than the prior quarter’s 0.5% increase. Year-on-year it showed 3.8% growth, a tad cooler than a prior reading of 3.9%.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 32,864

Target price:

Protective stop:

Outlook
Price broke below the support zone which has now become a resistance zone after violating the triangle pattern yesterday. The 20EMA is acting as resistance. It is now testing the resistance zone. We are likely to see price continuing to move lower if it capped by this resistance zone.

Trading Idea
Sell now 32,850 for 32,590 with a stop above 33,030

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,213

Target price:

Protective stop:

Outlook
This index is currently moving within a rectangle sideway consolidation zone. It has to penetrate above the 20EMA to move higher to 18,180. Stochastic could be turning up but MACD remains bearish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation: Long @ 14,600

Last: 14,207

Target price: 14,820

Protective stop: 14,540

Outlook
Price violated the support zone of 14,430 and formed a temporary bottom at 14,039. It has to penetrate the 20EMA and formed higher highs and higher lows to move higher again. Else, we will see price moving lower to 14,890. Stochastic is at the oversold zone and MACD remains bearish.

Trading Idea
Buy 14,600 for 14,820 with a stop below 14,540. Entry and stop were filled on 26 Oct

DAX Index
(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 14,737

Target price:

Protective stop:

Outlook
Price retested its previous low support zone at 14,630. It has to penetrate its recent high of 14,930 to be bullish again. A violation of its recent low support zone will hint for further downside. Stochastic is at the oversold zone and MACD remains bearish.

Trading Idea
Wait for better trading idea

Market News

• Wall Street ended higher on Tuesday as a spate of solid corporate earnings and upbeat forecasts stoked investor risk appetite and sparked a broad rally. Interest rate sensitive megacaps providing much of the upside lift as benchmark Treasury yields held steady, comfortably below their recent spike to 5%.
  
• On Friday, the Commerce Department is expected to follow with its closely watched Personal Consumption Expenditures report, which analysts expect will provide further evidence that inflation is slowly cooling down toward the Federal Reserve’s average annual 2% target rate.
  
• Fed Chair Jerome Powell is set to speak at the Moynihan Lecture in Social Science and Public Policy in Washington, D.C., later in the day. Powell had last week reiterated the prospect of at least one more rate hike this year, and that rates will remain higher for longer.

Market Views

• China led Asia’s stock markets higher on Wednesday as investors cheered the approval of a trillion-yuan sovereign bond issue as a harbinger of stimulus. Hang Seng index rose 200 points and Nikkei 225 index gained 361 points.
  
• A bulk of the issuance will be directed towards infrastructure spending, particularly rebuilding disaster-hit areas and bolstering relief capabilities. Construction and utility stocks were the best performers on Chinese indexes, following news of the issuance.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,190

Target price:

Protective stop:

Outlook
Price rebounded from its previous low support zone. It could have a correction first before continuing to move higher. Stochastic is rising from the oversold zone. MACD is bearish but it is moving higher.

Trading Idea
Buy 33,030 for 33,470 with a stop below 33,840

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,210

Target price:

Protective stop:

Outlook
This index is currently moving within a rectangle sideway consolidation zone. A big directional movement will be seen once either ends is violated. Price will be moving higher if it move above the 20EMA. Stochastic is falling and MACD remains bearish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 14,687

Target price:

Protective stop:

Outlook
Price was rejected by its support-turned-resistance zone. It could have a correction first before moving higher to 14,920. Stochastic is turning down but MACD has turned bullish.

Trading Idea
Buy 14,600 for 14,820 with a stop below 14,540

DAX Index
(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 14,880

Target price:

Protective stop:

Outlook
A hammer reversal candlestick pattern was formed two days ago after forming a low at 14,627. Price is likely to test the 20EMA at 15,130. Stochastic could be turning up but MACD remains bearish.

Trading Idea
Wait for better trading idea

Market News

• Wall Street’s main indexes closed lower on Thursday after a U.S. Treasury auction sent bond yields higher while investors were already digesting data that showed consumer prices rose more than anticipated in September.
  
• U.S. benchmark 10-year yields rose after the inflation data and climbed further to hit a session high after the auction. The benchmark yield rose as high as 4.728%, its highest-level since Friday after falling for the last two days.
  
• Investors were also carefully monitoring developments in the Middle East. Gaza moved closer to a humanitarian catastrophe as the death toll rose and vital supplies ran low, while Israel massed tanks on the enclave’s border ahead of an anticipated ground invasion amid international calls for restraint.

Market Views

• Asian shares slid on Friday while the dollar was firm after U.S. consumer prices increased more than expected, bolstering the case for Fed to keep rates higher for longer. Hang Seng index slumped 385 points and Nikkei 225 index dropped 161 points.
  
• Oil prices rose on Friday after the U.S. tightened its sanctions programme against Russian crude exports, raising supply concerns in an already tight market. U.S. crude rose 0.63% to $83.43 per barrel and Brent was at $86.33, up 0.38% on the day.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,649

Target price:

Protective stop:

Outlook
A bearish engulfing was formed yesterday after price was capped by its previous price high resistance zone. This could be a sign of a possible correction. There is divergence warning given from the Stochastic and MACD. Dow Jones is likely to have a pullback to the next support zone.

Trading Idea
Sell 33,750 for 33,270 with a stop above 33,840

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 17,829

Target price:

Protective stop:

Outlook
Hang Seng rebounded and moved back inside the channel. A correction is likely and price could rebound from 17,420 if the bullish momentum resumes. Stochastic is going to fall and MACD has turned bullish.

Trading Idea
Wait for better trading idea

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 15,197

Target price:

Protective stop:

Outlook
Nasdaq was resisted by its previous price high resistance zone. Price is likely to break below the 20EMA and to move lower to the next support zone. There is divergence warning given from both the Stochastic and MACD.

Trading Idea
Sell 15,200 for 14,900 with a stop above 15,250

DAX Index
(CFD Symbol: GER40)

Trend:

Recommendation:

Last: 15,401

Target price:

Protective stop:

Outlook
Price was resisted by its previous price high resistance zone. A bearish engulfing was formed yesterday, hinting at possible correction ahead. It is likely to break the 20EMA and to move lower. Stochastic is falling.

Trading Idea
Wait for better trading idea