Tag: JP225

CFD Indices – Hang Seng Index Slipped On Concerns Over COVID-19 In China.

Shueh Ting Wong

Market News

    • U.S. stock futures were tracking in a tight range during Thursday’s evening deals, with markets remaining closed for the Thanksgiving public holiday. European markets remained upbeat on Thursday as investors assessed the latest meeting minutes from the U.S. Fed.
    • Tokyo’s core consumer price index rose 3.6% in November on an annualized basis, more than the 3.5% expected in a Reuters poll, marking the fastest annual pace Japan’s capital has seen since April 1982, and significantly above the Bank of Japan’s inflation target of 2%.
    • Oil prices fell Thursday as the market digests the possibility of a higher-than-expected price cap on Russian crude. European Union governments have not yet agreed and are currently discussing the proposal, but a price cap at this level would likely mean that Russia will continue to sell its oil, reducing the risk of a supply shortage in global oil markets.

    Market Views

    • Shares in the Asia-Pacific were mostly lower on Friday as markets in the U.S. were closed for the Thanksgiving holiday. Hang Seng index slid 169 points and Nikkei 225 index dropped 112 points.
    • China’s reported Covid cases continued to rise Thursday. Zhengzhou, where protests took place at Apple supplier Foxconn’s iPhone factory, said it would conduct mass testing, resulting in more than 2% losses in Hang Seng Tech index.



    Dow Jones Index

    (CFD Symbol: US30)

    Trend:

    Recommendation:

    Last: 34,204

    Target price:

    Protective stop:

    Outlook
    This index is currently trading near its previous price high resistance zone. There is potential divergence warning given from MACD. We could see price falling to 20EMA at 33,270 if it unable to surpass this resistance zone.

    Trading Idea
    Wait for better trading idea


    Hang Seng Index

    (CFD Symbol: HK50)

    Trend:

    Recommendation:

    Last: 17,469

    Target price:

    Protective stop:

    Outlook
    This index has been undergone a price correction. It is currently being supported by the 20EMA support at 17,250. As long as this support holds, we see price rebounding to retest its high again. Stochastic is still strong and MACD is bullish.

    Trading Idea.
    Buy 17,300 for 18,350 with a stop below 16,600.


    Nasdaq 100 Index

    (CFD Symbol: USTec)

    Trend:

    Recommendation:

    Last: 11,698

    Target price:

    Protective stop:

    Outlook
    Price rebounded after being supported by the 20EMA three nights ago. It is currently trading near to its previous high resistance zone. We could see price retracing to the 20EMA at 11,565 if it unable to surpass this resistance zone.

    Trading Idea
    Wait for better trading idea.



    Nikkei 225 Index

    (CFD Symbol: JP225)

    Trend:

    Recommendation:

    Last: 28,288

    Target price:

    Protective stop:

    Outlook
    This index is trading near to its previous high resistance zone. A shooting star candlestick pattern was formed yesterday and a confirmation candle is in the process of making. We are likely to see price retracing to the 20EMA at 27,920. Stochastic is at the overbought zone and MACD is giving potential divergence warning.

    Trading Idea
    Wait for better trading idea.

    CFD Indices – Wall Street Rallied On Best Buy Corporate Result

    Shueh Ting Wong

    Market News

      • U.S. stocks rallied on Tuesday, with the S&P 500 closing at its highest level in 2-1/2 months, as a sales forecast by Best Buy dampened concerns high inflation would lead to a dismal holiday shopping season while a bounce in oil prices helped lift energy shares.
      • Saudi Arabia said OPEC+ was sticking with outputs cuts, shooting down a report on Monday that said the alliance was considering increasing output which sent crude prices sharply lower, providing support to the energy sectors.
      • Kansas City President Esther George said the central bank may need to boost interest rates to a higher level and hold them there for longer to temper consumer demand and cool inflation. Investors were awaiting remarks by St. Louis Fed Reserve President James Bullard on Tuesday ahead of the minutes from the Fed’s November meeting scheduled for Wednesday.

      Market Views

      • Shares in the Asia-Pacific were mixed on Wednesday morning after overnight rally in U.S. stocks and New Zealand’s central bank delivered a 75 basis point hike, the biggest rate hike ever in the central bank’s history. Hang Seng index fell 12 points while Nikkei 225 index rose 170 points.
      • Singapore’s economy is projected to grow around 3.5% in 2022, according to forecasts from the Ministry of Trade and Industry, citing a softening external demand outlook following Europe’s energy crunch and China’s continued Covid-related restrictions.



      Dow Jones Index

      (CFD Symbol: US30)

      Trend:

      Recommendation: Short @ 33,700

      Last: 34,090

      Target price: 33,050

      Protective stop: 34,000 Triggered

      Outlook
      This index is currently trading near its previous price high resistance zone. There is potential divergence warning given from MACD. We could see price falling to 20EMA if it forms a rejection candle at this resistance zone.

      Trading Idea
      Sell 33,700 with a stop above 34,000 for 33,050. Entry and Stop were triggered on 22 Nov.


      Hang Seng Index

      (CFD Symbol: HK50)

      Trend:

      Recommendation:

      Last: 18,116

      Target price:

      Protective stop:

      Outlook
      This index has been undergone a price correction. It is currently being supported by the 20EMA support at 17,160. As long as this support holds, we see price rebounding to retest its high again. Stochastic is still strong and MACD is bullish.

      Trading Idea.
      Buy 17,350 for 18,350 with a stop below 16,600.


      Nasdaq 100 Index

      (CFD Symbol: USTec)

      Trend:

      Recommendation:

      Last: 11,698

      Target price:

      Protective stop:

      Outlook
      This index has been undergone a price correction. It is currently being supported by the 20EMA support at 17,160. As long as this support holds, we see price rebounding to retest its high again. Stochastic is still strong and MACD is bullish.

      Trading Idea
      Wait for better trading idea.



      Nikkei 225 Index

      (CFD Symbol: JP225)

      Trend:

      Recommendation:

      Last: 28,368

      Target price:

      Protective stop:

      Outlook
      This index rebounded from the rising 20EMA that is acting as support at the moment. It is testing its previous price high resistance zone. MACD is giving potential divergence warning. We are likely to see price correction if it unable to surpass this resistance zone.

      Trading Idea
      Wait for better trading idea.

      CFD Indices – Wall Street Slumped On Powell Confirmation of Aggressive Rate Hikes

      Shueh Ting Wong

      Market News

      • Wall Street’s ended lower on Thursday, with the Nasdaq dropping more than 2%, as investors reacted to Fed officials including Chair Jerome Powell offering further signposting of aggressive interest rate hikes this year.
      • A half-point interest rate increase will be “on the table” when the U.S. central bank meets on May 3-4 to approve the next in what is expected to be a series of rate increases this year, Powell said.
      • Earlier on Thursday, San Francisco Fed President Mary Daly said she supports raising the U.S. central bank’s target for overnight borrowing costs to 2.5% by the end of this year, but whether or how much further it will need to rise will depend on what happens with inflation and labour markets.

      Market Views

      • Asian stocks dropped on Friday morning, with U.S. Fed Chair Jerome Powell toughening his stance on inflation. Investors are now bracing for more aggressive monetary policy tightening. Hang Seng index fell 143 points and Nikkei 225 index slid 506 points.
      • The China Securities Regulatory Commission said in a statement that it held a meeting Thursday with institutional investors including the National Social Security Fund, banks, and insurers, where it asked them to increase their equity investments.

      Dow Jones Index

      (CFD Symbol: US30)

      Trend:

      Recommendation:

      Last: 34,670

      Target price:

      Protective stop:

      Outlook

      Price retraced after hitting its recent price high resistance zone. It is currently sitting at 20EMA support at 34,620 and if price further violates this support, we see price moving lower towards 34,100. Stochastic is weak and MACD has given divergence warning

      Trading Idea

      Sell 34,860 for 34,180 with a stop above 35,150.


      Hang Seng Index

      (CFD Symbol: HK50)

      Trend:

      Recommendation:

      Last: 20,558

      Target price:

      Protective stop:

      Outlook

      Price appears to rebound as it hit the Fibonacci 50% correction point. The 20EMA is falling, suggesting a bearish price trend. MACD is bearish but Stochastic is at the oversold region. These could increase chances of the stock price rebounding to move higher.

      Trading Idea.
      Wait for better trading idea.


      Nasdaq 100 Index

      (CFD Symbol: USTec)

      Trend:

      Recommendation:  Long @ 13,950

      Last: 14,109

      Target price:14,500

      Protective stop:13,700

      Outlook

      Price was resisted by the 20EMA which is acting as resistance at the moment. The 20EMA is falling, confirming the downtrend. Stochastic is at the oversold region and MACD is bearish. As long as price stays below the 20EMA, price is likely to move lower towards its recent low.

      Trading Idea
      Buy 13,950 for 14,500 with a stop below 13,700. Entry and Stop was filled on 21 April.



      Nikkei 225 Index

      (CFD Symbol: JP225)

      Trend:

      Recommendation:

      Last: 27,061

      Target price:

      Protective stop:

      Outlook
      This index rebounded and hit its Fibonacci 62% resistance point. However, it formed a Shooting Star candlestick pattern at this resistance level. If price moves below the 20EMA, price is likely to retest its recent low again. Stochastic is rising but MACD is bearish.

      Trading Idea
      Wait for better trading idea

      CFD Indices – Wall Street Rallied As Positive Earning Offset Rate Hikes

      Shueh Ting Wong

      Market News

      • The three main Wall Street indexes had their best days in over a month on Tuesday, with the Nasdaq advancing 2.2%, as investors responded to positive earnings and dovish comments from two U.S. Fed officials on interest rate rises.
      • St. Louis Fed Bank President James Bullard on Monday repeated his case for increasing the rates to 3.5% by the end of the year to slow a 40-year-high inflation. He mentioned he did not rule out a 75 basis points rate hike.
      • Bond yields continued their recent moves higher as the 30-year yield exceeded 3% for the first time since April 2019, and the yield on the 10-year Treasury Inflation-Protected Securities turned positive for the first time since March 2020, the start of the coronavirus pandemic

      Market Views

      • Asia Pacific stocks gained on Wednesday morning despite sovereign bonds continued a selloff as high inflation and hawkish U.S. Fed and China’s COVID-19 outbreak continue to be on investors’ radars. Hang Seng index rose 172 points and Nikkei 225 index was up 182 points.
      • Japan’s trade data released earlier in the day showed that exports grew 14.7% year on year and imports grew 31.2% year on year in March 2022. The trade balance contracted to JPY412.4 billion ($3.21 billion) and the adjusted trade balance contracted to JPY900 billion.

      Dow Jones Index

      (CFD Symbol: US30)

      Trend:

      Recommendation:

      Last: 34,897

      Target price:

      Protective stop:

      Outlook

      The price correction was halted at the Fibonacci 38% correction point. Price rebounded and moved above the rising 20EMA. Stochastic is rising from the oversold region and a bullish MACD crossover is likely. These could send price higher to test its previous resistance high.

      Trading Idea

      Buy 34,180. Stop at 33,850 and profit target at 34,900.


      Hang Seng Index

      (CFD Symbol: HK50)

      Trend:

      Recommendation:

      Last: 21,179

      Target price:

      Protective stop:

      Outlook

      Price moved below the 20EMA and is currently sitting at the Fibonacci 38% correction point. If price can stay above this support zone, we see price rebounding towards its previous high. Stochastic is at the oversold region and a bullish MACD crossover is likely.

      Trading Idea.
      Wait for better trading idea.


      Nasdaq 100 Index

      (CFD Symbol: USTec)

      Trend:

      Recommendation:  

      Last: 14,109

      Target price:

      Protective stop:

      Outlook

      Price is currently sitting at the Fibonacci 62% correction point. The price correction appears to be over and if price can break above the 20EMA at 14,290, we see price moving higher towards its recent price high. Stochastic is rising from oversold region and MACD is rising.

      Trading Idea
      Buy 13,950 for 14,500 with a stop below 13,700.



      Nikkei 225 Index

      (CFD Symbol: JP225)

      Trend:

      Recommendation:

      Last: 27,143

      Target price:

      Protective stop:

      Outlook
      This index rebounded from the Fibonacci 62% correction point after forming a bullish engulfing candlestick pattern. Stochastic is rising from the oversold region and a bullish MACD crossover is likely. We see price moving higher towards its recent high if it able to maintain above the 20EMA.

      Trading Idea
      Wait for better trading idea

      CFD Indices – Wall Street Weighed Down Fed Tightening

      Shueh Ting Wong

      Market News

      • Wall Street turned a rally into a sell-off on Tuesday, reversing earlier gains as impending monetary tightening from the Fed once again pulled growth stocks back into red territory. Dow Jones fell 87 points, S&P 500 was down 15 points and Nasdaq Composite slid 40 points.
      • The turnabout began in earnest shortly after remarks from Fed Governor Lael Brainard, who reiterated the need for the central bank to “expeditiously” take on decades-high inflation. The comments coming out from Fed officials have been more hawkish than the markets have anticipated.
      • Data published on Tuesday showed U.S. monthly consumer prices increased by the most in 16-1/2 years in March as war in Ukraine boosted the cost of gasoline to record highs, cementing the case for a 50 basis points interest rate hike from Fed next month.

      Market Views

      • Asian shares gained on Wednesday morning, boosted by U.S. inflation figures that fared better than markets’ worst expectations, causing U.S. yields to pause their march higher. Hang Seng index was up 31 points and Nikkei 225 index advanced 449 points.
      • Market sentiment was also capped by gains in oil and other commodity prices after Russian President Putin said that on-and-off peace negotiations have again returned to a dead-end situation, which also hurt the euro.

      Dow Jones Index

      (CFD Symbol: US30)

      Trend:

      Recommendation:

      Last: 34,385

      Target price:

      Protective stop:

      Outlook

      Price is having a correction after forming an Evening Star candlestick pattern. It is currently sitting at the Fibonacci 38% correction point and if this support holds, we see price rebounding to retest its high again. Stochastic is near to the oversold region and MACD is turning up.

      Trading Idea

      Buy 34,180. Stop at 33,850 and profit target at 34,900.


      Hang Seng Index

      (CFD Symbol: HK50)

      Trend:

      Recommendation: Long @ 22,050

      Last: 21,327

      Target price: 23,400

      Protective stop: 21,450 Triggered

      Outlook

      Price moved below the 20EMA and is currently sitting at the Fibonacci 38% correction point. If it is unable to move above the gap resistance zone, we see a further price correction. Stochastic is falling. MACD has turned bearish.

      Trading Idea.
      Buy 22,050 for 23,400 with a stop below 21,450. Entry order was filled on 7 April. Stop was triggered on 11 April.


      Nasdaq 100 Index

      (CFD Symbol: USTec)

      Trend:

      Recommendation:  

      Last: 14,035

      Target price:

      Protective stop:

      Outlook

      Price moved below the 20EMA and is currently sitting at the key Fibonacci 62% correction point. It has to stay above this support to resume its uptrend. A possible rebound is likely as Stochastic is at the oversold region. MACD is bearish.

      Trading Idea
      Wait for better trading idea.



      Nikkei 225 Index

      (CFD Symbol: JP225)

      Trend:

      Recommendation:

      Last: 26,781

      Target price:

      Protective stop:

      Outlook
      This index rebounded after retracing to the key Fibonacci 62% correction point. Price formed a bullish engulfing candlestick pattern. Stochastic is at the oversold region but MACD remain bearish. We see price rebounding to move higher.

      Trading Idea
      Wait for better trading idea