CFD Indices – Nasdaq Index Rallied, Boosted By Meta Platforms.

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.

CFD Indices – U.S. Indices Rallied On Good Labour Data

Market News

  • U.S. three stock indexes closed over 1% higher on Tuesday as labour cost data encouraged investors about the Fed’s aggressive approach to taming inflation a day ahead of the central bank’s critical policy decision.
  • U.S. labour costs increased at their slowest pace in a year in the fourth quarter as wage growth slowed. The U.S. central bank is expected to hike the Fed funds rate by 25 basis points, continuing the year 2022 path in which the Fed aggressively boosted rates to control soaring inflation.
  • Japan’s factory activity held steady at 48.9, below the 50-point mark separating growth from contraction, logging another contraction in January, marking a third straight month of contraction.

Market Views

  • Asian markets were higher on Wednesday morning as investors looked ahead to the Fed’s Wednesday meeting, as well as some economic data in the region. Hang Seng index rose 97 points and Nikkei 225 index gained 48 points.
  • China’s factory activity in January signaled a further contraction from previous readings, albeit at a slower pace, marking the sixth monthly contraction in a row. Both manufacturing supply and demand continued to shrink last month.



Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 34,005

Target price:

Protective stop:

Outlook
Price managed to stay above the 20EMA which is acting as support at the moment. The next resistance lies at 34,330. Stochastic remains weak. MACD is bullish but appears to have losing strength.

Trading Idea
Wait for better trading idea.


Nikkei 225 Index
(CFD Symbol: JP225)

Trend:

Recommendation:

Last: 27,339

Target price:

Protective stop:

Outlook
This index has reached its support-turned-resistance level. A price correction to the 20EMA at 26,910 is likely to follow if price is unable to surpass this resistance zone. Stochastic is at the overbought zone and a bearish MACD crossover is likely.

Trading Idea.
Wait for better trading idea.


Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 12,043

Target price:

Protective stop:

Outlook
Price was capped by its previous price high resistance zone that capped price rally for the past fourth times. We could see a price decline if it is unable to surpass this resistance zone. Stochastic is at the overbought zone and a bearish crossover is likely.

Trading Idea
Sell 12,140 for 11,700 with a stop above 12,300.



FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation: Long @ 7720

Last: 7781

Target price: 7860

Protective stop: 7720

Outlook
Price is currently consolidating at the 20EMA support zone. As long as price stays above the 20EMA, the uptrend remains intact and we could see price testing its high again. Stochastic could be turning up 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.

CFD Indices – U.S. Indices Ended Higher On A Better U.S. GDP Data

Market News

  • Wall Street ended a choppy session higher on Thursday as investors grappled with an onslaught of economic data and a string of mixed corporate earnings, all while eyeing the clock as it ticks down toward next week’s Fed monetary policy meeting.
  • A raft of data showed the U.S. economy fared better in the fourth quarter than analysts expected, and the labour market remains tight, despite some signs of weakening demand. This is a double-edged sword for investors, as it could embolden the Fed to keep key interest rates at restrictive levels for longer.
  • The producer price index in Australia rose 5.8% for the final quarter of 2022 on an annualized basis, data from the Australian Bureau of Statistics showed. The reading was slightly lower than the previous quarter’s print of 6.4%, signal inflation may be easing in the nation.

Market Views

  • Asian markets were higher on Friday morning as traders digested Tokyo’s core consumer prices that rose 4.3%, nearing the highest for Japan’s capital since mid-1981. Hang Seng index rose 14 points and Nikkei 225 index gained 18 points.
  • Oil prices rose about 2% on Thursday on expectations that global demand will strengthen as top oil importer China reopens its economy and on positive U.S. economic data.



Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,889

Target price:

Protective stop:

Outlook
Price managed to stay above the 20EMA which is acting as support at the moment. The next resistance lies at 34,330. Stochastic remains weak. MACD is bullish but appears to have losing strength.

Trading Idea
Wait for better trading idea.


Nikkei 225 Index
(CFD Symbol: JP225)

Trend:

Recommendation:

Last: 27,388

Target price:

Protective stop:

Outlook
This index has reached its support-turned-resistance level and if price can’t break through this level, we are likely to see a price correction to the 20EMA at 26,780. Stochastic is at the overbought zone. MACD remains bullish.

Trading Idea.
Wait for better trading idea.


Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 11,976

Target price:

Protective stop:

Outlook
Price rebounded after trading near to the 20EMA support. It could head higher to test the resistance zone at 12,120. Stochastic is at the overbought region. MACD remains bullish but there is potential divergence warning.

Trading Idea
Wait for better trading idea.



FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation: Long @ 7720

Last: 7773

Target price:

Protective stop:

Outlook
Price broke out from a declining trendline today. We would like to see a firm close to confirm the breakout for a target of 7874. The 20EMA is acting as support currently. Stochastic is falling but MACD remains bullish.

Trading Idea
Buy 7720 for 7860 with a stop below 7650. Entry level was filled on 25 Jan.

CFD Indices – Wall Street Indices Ended Mixed Due To A Raft of Mixed Earnings

Market News

  • S&P 500 ended nominally lower on Tuesday at the close of a rocky session marked by a raft of mixed earnings and a technical malfunction at the opening bell. Dow Jones gained 104 points while the Nasdaq Composite fell 30 points.
  • More than 80 stocks of NYSE-listed stocks were halted at the top of the session due to an apparent technical malfunction, which caused initial price confusion and prompted an investigation by the U.S. Securities and Exchange Commission
  • Inflation in Australia rose to a new 32-year high of 7.8% in the final quarter of the fiscal year of 2022, marking the fastest pace since March 1990. The annualized figure of a rise in consumer prices was backed by higher prices in food, automotive fuel, and new residential construction.

Market Views

  • Asia-Pacific shares rose on Wednesday morning, taking the lead from Wall Street’s struggle for direction as China and Hong Kong markets remain closed for the Lunar New Year holidays. Nikkei 225 index was up 30 points.
  • National Australia Bank’s monthly business survey showed worsened business conditions for December with a reading of 12 points, a decline from November’s print of 20 points, reflecting deteriorated trading conditions, profitability, and employment.


Dow Jones Index
(CFD Symbol: US30)

Trend:

Recommendation:

Last: 33,629

Target price:

Protective stop:

Outlook
Price rebounded from the rising trendline support but this rebound could be short-lived as it is capped by the Fibonacci 62% correction point. Stochastic is still weak and MACD remains bearish. Price is likely to break down this trendline support to move lower.

Trading Idea
Wait for better trading idea.


Nikkei 225 Index
(CFD Symbol: JP225)

Trend:

Recommendation:

Last: 27,352

Target price:

Protective stop:

Outlook
This index has turned its chart outlook to bullish as it broke out a double bottom chart pattern. It will be a good entry if price retraces to the 20EMA support at 26,630, which is also the resistance-turned-support level. Stochastic is rising and MACD is bullish.


Trading Idea.
Wait for better trading idea.


Nasdaq 100 Index
(CFD Symbol: USTec)

Trend:

Recommendation:

Last: 11,755

Target price:

Protective stop:

Outlook
Price is on a decline after forming a hanging man candlestick pattern last night. We are likely to see price testing the 20EMA at 11,445 in the next few days. Stochastic is at the overbought region. MACD is bullish but the histogram is giving potential divergence warning.

Trading Idea
Wait for better trading idea.



FTSE 100 Index
(CFD Symbol: UK100)

Trend:

Recommendation:

Last: 7761

Target price:

Protective stop:

Outlook
Price was capped by the Fibonacci 62% correction point. We are likely to see price violating the 20EMA support to move lower to the next support zone at 7585-7616. However, if this index can stay above the 20EMA, it can rebound back to the previous high again. Stochastic is falling but MACD remains bullish.

Trading Idea
Buy 7720 for 7860 with a stop below 7650.

CFD Indices – Wall Streets Declined On U.S. Labour Data

Market News

  • U.S. stock indexes closed lower on Thursday after data pointing to a tight labor market renewed concerns the Fed will continue its aggressive path of rate hikes that could lead the economy into a recession.
  • A report from the Labour Department showed weekly jobless claims were lower than expected, indicating the labour market remains solid despite the Fed’s efforts to stifle demand for workers. Expectations the central bank would further dial down the size of its interest rate increases at its policy announcement next month were unchanged by the report.
  • The People’s Bank of China left the loan prime rates for 1-year and 5-year unchanged, widely in line with expectations. The 1-year LPR stayed at 3.65% while the 5-year LPR remained at 4.3%, both unchanged since August, 2022.

Market Views

  • Markets in the Asia-Pacific were higher on Friday morning as investors digested Japan’s inflation data. The nationwide core consumer price index rose 4% in December on an annualized basis, the fastest pace since 1981. Hang Seng index rose 199 points and Nikkei 225 index gained 28 points.
  • The e-commerce giant Amazon said on Thursday it will increase the prices of some of its music subscription plans from February to offset higher costs for shipping and wages.


    Dow Jones Index
    (CFD Symbol: US30)

    Trend:

    Recommendation: Short @ 33,650

    Last: 33,029

    Target price: 34,250

    Protective stop: 33,250 Triggered

    Outlook
    Price is currently testing the uptrend line support for a fifth time. This uptrend line support is crucial at 32,860. A violation of this support will bring price lower to 30,845. Stochastic is falling and MACD has turned bearish.

    Trading Idea
    Buy 33,650 for 34,250 with a stop below 33,250. Entry and stop were triggered on 18 Jan.


    Nikkei 225 Index
    (CFD Symbol: JP225)

    Trend:

    Recommendation:

    Last: 26,647

    Target price:

    Protective stop:

    Outlook
    This index is in an attempt to penetrating its recent price high resistance level of 26,633. As long as price closes above this level, we are likely to see price testing 27,670. Stochastic is rising and MACD is moving higher towards its zero line.


    Trading Idea.
    Wait for better trading idea.


    Nasdaq 100 Index
    (CFD Symbol: USTec)

    Trend:

    Recommendation:

    Last: 11,318

    Target price:

    Protective stop:

    Outlook
    The price correction has brought price lower to the 20EMA support at 11,279. Price has to rebound from this support to move higher, else, a violation of the 20EMA will bring price lower to 11,050. Stochastic is at the overbought zone and MACD is bullish

    Trading Idea
    Wait for better trading idea.



    FTSE 100 Index
    (CFD Symbol: UK100)

    Trend:

    Recommendation:

    Last: 7778

    Target price:

    Protective stop:

    Outlook
    Price created a recent price high of 7874. It is in a price correction and we are likely to see price retracing to the 20EMA at 7685. Stochastic is strong and bullish and is at the overbought zone. MACD remains bullish at the moment.

    Trading Idea
    Wait for better trading idea.