Market News
Wall Street rallied to a convincingly higher close on Tuesday, but trade was choppy as investors digested comments from Fed Chair Jerome Powell about how long the central bank may need to tame inflation.
Powell’s comments renewed investor hopes for less aggressive monetary policy that wavered after a strong U.S. jobs report last Friday. He expects they’re not going to be cutting rates anytime soon, but that there is a good path, that they’re accomplishing what they need to accomplish.
President Biden will call for a nationwide cap of $35 a month on out-of-pocket insulin costs during his State of the Union Address on Tuesday, but is unlikely to get his wish as it lacks enough Congressional support.
Market Views
Asia-Pacific markets traded mixed on Wednesday morning, as Fed Chair Powell overnight acknowledged that inflation is declining, which is a sign the central bank may soon pause its rate hikes. Hang Seng index rose 64 points while Nikkei 225 index dropped 117 points.
U.S. trade deficit came in smaller than economists expected for December. President Joe Biden’s State of the Union will be closely watched for clues on America’s growing tension with China
Dow Jones Index(CFD Symbol: US30)
Trend:
Recommendation:
Last: 34,139
Target price:
Protective stop:
OutlookPrice could be moving within a triangle pattern. The 20EMA is acting as first layer of support at 33,810. MACD is bullish and is rising, hinting at the increased upward momentum. We are likely to see price breaking out from the triangle to move higher.
Trading IdeaWait for better trading idea.
DAX Index(CFD Symbol: GER40)
Trend:
Recommendation:
Last: 15,462
Target price:
Protective stop:
OutlookThis index managed to stay above the rising 20EMA which is acting as support currently at 15,145. Price is likely to test its previous price high at 15,564. Stochastic is at the overbought zone. MACD is bullish and a bullish crossover is likely.
Trading Idea. Wait for better trading idea.
Nasdaq 100 Index(CFD Symbol: USTec)
Trend:
Recommendation:
Last: 12,729
Target price:
Protective stop:
OutlookPrice rebounded with a bullish engulfing candlestick pattern last night. It is likely to retest its previous price high resistance at 12,890. A penetration of this resistance will hint for further upside. Stochastic is strong and bullish. MACD remains bullish as well
Trading IdeaWait for better trading idea.
FTSE 100 Index(CFD Symbol: UK100)
Trend:
Recommendation: Long @ 7720
Last: 7908
Target price: 7860 Filled
Protective stop: 7720
OutlookPrice penetrated its previous price high resistance zone. It has been moving higher along with the rising 20EMA support. It is going to test its previous price high of 7911, and a penetration of this resistance will hint for further upside. Stochastic is rising and MACD is 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. Profit order was filled on 3 Feb
