Tag: HK50

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.

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.

Market News

• Nasdaq and S&P 500 ended higher on Thursday and touched roughly five-month highs as a more dovish-than-expected message from Fed Chair boosted equities and Meta Platforms shares soared on rigorous cost controls. However, Dow Jones Index slipped, dragged down by declines in some big healthcare stocks.

• Investors were still digesting the Fed’s policy decision on Wednesday and comments from Powell, who acknowledged progress in the fight against inflation and appeared reluctant to push back against the rally in stocks and bonds.

• Apple projected another revenue decline in the start of the year, Amazon warned that its operating profit could fall to zero in the current quarter, and Google parent Alphabet missed expectations in its fourth-quarter profit and revenue.

Market Views

• Asian markets were mixed on Friday morning as disappointing earnings from U.S. tech giants undermined sentiment ahead of a key U.S. non-farm payrolls report. Hang Seng index slipped 383 points while Nikkei 225 index rose 116 points.

• Travel between mainland China and Hong Kong as well as Macao will fully resume on Feb. 6, China’s Hong Kong and Macao Affairs Office of the State Council said in an announcement.

Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 34,015

Target price:

Protective stop:

Outlook
Price could be moving within a triangle pattern. The 20EMA is acting as first layer of support at 33,740. A violation of the 20EMA will hint at the lower rising trendline support. Stochastic is moving lower. MACD is bullish but is forming potential divergence warning

Trading Idea
Wait for better trading idea.

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 21,558

Target price:

Protective stop:

Outlook
This index was capped by the Fibonacci 50% correction point, which is also its previous resistance zone. It is currently retracting to the 20EMA support and once this support breaks, we see further decline to 19,630. Both MACD and Stochastic are falling.

Trading Idea.
Wait for better trading idea.

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation: Short @ 12,140

Last: 12,587

Target price: 11,700

Protective stop: 12,300 Triggered

Outlook
Price was capped by its previous price high resistance zone. A possible price retracement to the 20EMA at 11,880 is likely. Stochastic is at the overbought zone and MACD is bullish.

Trading Idea
Sell 12,140 for 11,700 with a stop above 12,300. Entry and stop were triggered on 1 Feb.

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation: Long @ 7720

Last: 7781

Target price: 7860

Protective stop: 7720

Outlook
Price managed to move along with the rising 20EMA which is acting as first layer of support. As long as price stay above the 20EMA, we see price testing its previous price high at 7874. Stochastic is rising and MACD remains bullish

Trading Idea
Buy 7720 for 7860 with a stop below 7650. Entry level was filled on 25 Jan. Lifted stop to break-even at 7720 on 1 Feb.

Market News

• Wall Street’s main indexes closed lower on the first trading day of 2023 with the biggest drags from Tesla and Apple, while investors worried about the Federal Reserve’s interest-rate hiking path as they awaited minutes from its December meeting.
  
• Investors will closely monitor the minutes of the Fed’s December policy meeting, when the central bank raised interest rates by 50 basis points after four straight 75 basis points hikes and signaled rates could stay higher for longer.
  
• The price of Brent oil will fall to the lower end of $70 a barrel by year’s end and expect demand for oil to be kept low due to a prolonged recession in China, according to Citi’s global head of commodities research, as a number of oil producing countries are facing extreme difficulties

Market Views

• Markets in the Asia-Pacific traded mixed on Wednesday morning to commence the first trading week for the year. Hang Seng index jumped 409 points while Nikkei 225 index dropped 369 points.
  
• China’s factory activity slid further into contraction territory in December. The Caixin/Markit manufacturing purchasing managers’ index fell further to 49 in December after recording 49.4 in November – remaining below the 50-point mark that separates growth and contraction.

(CFD Symbol: US30)
Dow Jones Index

Trend:

Recommendation:

Last: 33,090

Target price:

Protective stop:

Outlook
Price was capped by the Fibonacci 38% correction point, which is also the support-turned-resistance price level. The 20EMA is acting as resistance as well. A violation of 32,774 will likely to bring price lower to 32,360.

Trading Idea
Sell 33,350 for 32,400 with a stop above 33,850.

Hang Seng Index
(CFD Symbol: HK50)

Trend:

Recommendation:

Last: 20,583

Target price:

Protective stop:

Outlook
This index is strong and bullish as price is moving higher along with the rising 20EMA support. As long as price moves above the 20EMA, we see price moving higher to the weekly resistance of 22,845. Stochastic is rising and there is a bullish MACD crossover.

Trading Idea.
Wait for better trading idea.

Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 10,871

Target price:

Protective stop:

Outlook
Nasdaq is very bearish with the 20EMA  acting as the first resistance point at 11,140. It is trading near to the triple bottom support zone, but it has to penetrate above the 20EMA to move higher. Stochastic is at the oversold zone and MACD is bearish.

Trading Idea
Sell 11,100 for 10,700 with a stop above 11,300.

FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7565

Target price:

Protective stop:

Outlook
Price rebounded after being supported by the 20EMA support. However, there is a previous price high resistance that capped price rally twice. We are likely to see price testing this price resistance for a third time, and a correction to follow thereafter if price unable to penetrate the resistance.

Trading Idea
Wait for better trading idea.