. Daily Index Analysis - Dollar pause lifts Asian, tech turmoil.

Daily Index Analysis – Dollar pause lifts Asian, tech turmoil.

Daily Index Analysis – Dollar pause lifts Asian, tech turmoil.

18 Apr 2024

Introduction:

Amidst varied global market movements, Asian stocks rebounded as the dollar’s surge paused. Notable gains were observed across indices, with Japan’s Nikkei 225 and South Korea’s Kospi leading the uptrend. Meanwhile, European markets saw modest gains at the opening, fueled by a temporary ease in Middle East tensions. However, U.S. stocks concluded in negative territory on Wednesday, influenced by falling crude prices and a mix of factors including cautious Federal Reserve commentary and ongoing geopolitical uncertainties.

Market In Focus for today – Dow Jones

Dow Jones continued its attempts to settle below the support at 37,800 – 37,900.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38137.41 | Negative Crossover | Bearish
  • MA 20: 38355.50 | Negative Crossover | Bearish
  • MA 50: 38814.95 | Negative Crossover | Bearish

Simple:

  • MA 5: 38099.10 | Negative Crossover | Bearish
  • MA 20: 38338.00| Negative Crossover | Bearish
  • MA 50: 39069.34 | Negative Crossover | Bearish

RSI (Relative Strength Index): 35.54| Sell Zone| Bearish

Stochastic Oscillator: 89.66| Selling Zone | Positive

Resistance And Support Levels:

  • R1: 38568.59 | R2: 39334.62
  • S1: 37887.67| S2: 37313.41

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Sell Limit: 38472.83 | Take Profit: 37887.67| Stop Loss: 38898.41.

S&P 500:

The S&P 500 declined as part of a widespread retreat observed in the technology sector.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5106.13 | Negative Crossover | Bearish
  • MA 20: 5142.61 | Negative Crossover | Bearish
  • MA 50: 5191.07 | Negative Crossover | Bearish

Simple:

  • MA 5: 5103.62 | Negative Crossover | Bearish
  • MA 20: 5152.87| Negative Crossover | Bearish
  • MA 50: 5224.52 | Negative Crossover | Bearish

RSI (Relative Strength Index): 34.09| Selling Zone| Negative

Stochastic Oscillator: 15.93| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 5196.60 | R2: 5332.77
  • S1: 5057.03| S2: 4880.01

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Sell Limit : 5165.97 | Take Profit: 5026.39| Stop Loss: 5281.71.

FTSE 100:

FTSE 100 saw gains despite instability in US tech stocks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7900.64 | Positive Crossover | Bullish
  • MA 20: 7917.57 | Negative Crossover | Bearish
  • MA 50: 7910.38 | Negative Crossover | Bearish

Simple:

  • MA 5: 7895.06 | Positive Crossover | Bullish
  • MA 20: 7935.11| Negative Crossover | Bearish
  • MA 50: 7942.94 | Negative Crossover | Bearish

RSI (Relative Strength Index): 46.94| Buy Zone| Positive

Stochastic Oscillator: 30.91| Negative Zone | Positive

Resistance And Support Levels:

  • R1: 7959.8 | R2: 8063.1
  • S1: 7802.3| S2: 7662.1

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Sell Limit : 7938.6 | Take Profit: 7808.0| Stop Loss: 8016.2.

DAX 40:

Today, attention is focused on the DAX Index as corporate earnings, alongside developments from the European Central Bank (ECB) and the Federal Reserve, take center stage.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17899.01 | Negative Crossover | Bearish
  • MA 20: 17984.80 | Negative Crossover | Bearish
  • MA 50: 18084.07 | Negative Crossover | Bearish

Simple:

  • MA 5: 17903.45 | Negative Crossover | Bearish
  • MA 20: 17991.77 | Negative Crossover | Bearish
  • MA 50: 18228.00 | Negative Crossover | Bearish

RSI (Relative Strength Index): 40.09| Sell Zone| Bearish

Stochastic Oscillator: 46.95| Neutral Zone | Neutral

Resistance And Support Levels:

  • R1: 18146.4 | R2: 18593.8
  • S1: 17736.9 | S2: 17395.7

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Sell Limit : 18093.3 | Take Profit: 17767.3 | Stop Loss: 18373.9.

Elsewhere in the Indices Market:

Asian stocks rebound as the surging dollar takes a breather.

The Shanghai composite is up at 0.09%. Overall, the Singapore MSCI up 1.02% to 290.43. Over in Hong Kong, the Hang Seng Index up 0.82% to 16,385.87. In Japan, the Nikkei 225 up 0.31% to 38,079.70, while the Topix index was up 0.54% to 2677.45. South Korea’s Kospi up 1.95% to 2,634.70. Australia S&P/ASX 200 up 0.48% to, 7,642.10.

In the opening of Thursday’s trading session, European indices made modest gains, boosted by a temporary easing of tensions in the Middle East.

The DAX futures contract in Germany traded 0.01 higher, CAC 40 futures in France up 0.39% to 8,012.68 and the UK 100 futures contract in the U.K. up 0.46% to 7,884.22.

The session concluded with all three major U.S. stock indexes ending in negative territory.

On Wednesday, U.S. stocks ended in the red amid a drop in crude oil prices, while investors deliberated over prudent remarks from the U.S. Federal Reserve and persistent geopolitical tensions alongside a blend of varied quarterly earnings reports.

Indexes: Dow down 0.12%, S&P 500- down 0.58%, Nasdaq down 1.15%.

Corporate News:

Netflix, Inc. (NFLX) down 0.62% at 613.69, Tesla, Inc (TSLA) down 1.06% at 155.45, Apple Inc. (AAPL) down 0.81% at 168.00. Goldman Sachs Group Inc (GS) up 1.78% at 403.91, Morgan Stanley (MS) up 1.05% at 90.08.

Key Economic Events & Data Release Today:

(AUD) Employment Change (Mar) Forecast –7.2K, Previous –116.5K at 07:00.

(EUR) EU Leaders Summit at 15:30

(USD) Initial Jobless Claims Forecast 215K, Previous 211K at 18:00

(USD) Existing Home Sales (Mar) Forecast 4.20M, Previous 4.38M at 19:30.