- 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%.
- 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)
Recommendation: Short @ 32,500
Target price: 31,600
Protective stop: 32,600
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.
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)
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.
Buy 19,600 for 20,500 with a stop below 18,950.
Nasdaq 100 Index
(CFD Symbol: USTec)
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.
Sell 12,850 with a stop above 13,010 for 12,400.
FTSE 100 Index
(CFD Symbol: UK100)
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.
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