. Daily Index Analysis - Dow Dips, DAX Turbulent, NASDAQ Soars.

Daily Index Analysis – Dow Dips, DAX Turbulent, NASDAQ Soars.

Daily Index Analysis – Dow Dips, DAX Turbulent, NASDAQ Soars.

21 Dec 2023

Introduction:

In the global indices market, Asian stocks declined following Wall Street’s retreat from its record-setting rally. European stocks also dip as investors secure profits ahead of the holiday break. Meanwhile, on Wednesday, U.S. stocks showed mixed results as the market paused amid a rally fueled by rate cut hopes, ultimately concluding with all three major indexes closing in negative territory.

Market In Focus for today – Dow Jones

Wednesday marked the end of a nine-day winning streak for the Dow as it closed lower. Investors seemed to engage in profit-taking, reversing the sharp rally observed in stocks over the past few weeks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37641.20 | Negative Crossover | Bearish
  • MA 20: 37427.47 | Positive Crossover | Bullish
  • MA 50: 36761.30 | Positive Crossover | Bullish

Simple:

  • MA 5: 37684.02 | Negative Crossover | Bearish
  • MA 20: 37500.40| Positive Crossover | Bullish
  • MA 50: 36671.27 | Positive Crossover | Bullish

RSI (Relative Strength Index): 62.86| Buy Zone| Bullish

Stochastic Oscillator: 6.94|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 38010.50 | R2: 38881.92
  • S1: 37253.74| S2: 36359.39

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit: 37307.68 | Take Profit: 38010.50| Stop Loss: 36917.23.

DAX 40:

DAX 40 consolidates below the record high achieved last week. After reaching its record high near the 17,000 mark last week, the DAX 40 is now consolidating, trading in a range between 16,700 and 16,800.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16857.30 | Negative Crossover | Bearish
  • MA 20: 16872.65 | Negative Crossover | Bearish
  • MA 50: 16668.53 | Negative Crossover | Bullish

Simple:

  • MA 5: 16874.01 | Negative Crossover | Bearish
  • MA 20: 16940.25| Negative Crossover | Bearish
  • MA 50: 16696.42| Negative Crossover | Bullish

RSI (Relative Strength Index): 44.43| Sell Zone| Bearish

Stochastic Oscillator: 8.15|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 16978.4 | R2: 17216.7
  • S1: 16793.0| S2: 16351.7

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Stop Sell : 16704.8 | Take Profit: 16351.7| Stop Loss: 16943.1.

Nasdaq 100:

The NASDAQ experienced an upward movement, buoyed by the robust performance of Alphabet stock.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16884.94 | Negative Crossover | Bearish
  • MA 20: 16748.16 | Positive Crossover | Bullish
  • MA 50: 16426.40 | Positive Crossover | Bullish

Simple:

  • MA 5: 16904.96 | Negative Crossover | Bearish
  • MA 20: 16781.76| Positive Crossover | Bullish
  • MA 50: 16319.84 | Positive Crossover | Bullish

RSI (Relative Strength Index): 63.03| Buy Zone| Bullish

Stochastic Oscillator: 8.92|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 17031.68 | R2: 17399.53
  • S1: 16725.13| S2: 16224.44

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit: 16653.60 | Take Profit: 17031.68| Stop Loss: 16387.93.

FTSE 100:

European markets concluded Wednesday on a positive note as investors absorbed new inflation data. The FTSE reached a three-month high in response to the inflation figures.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7692.92 | Positive Crossover | Bullish
  • MA 20: 7646.35 | Positive Crossover | Bullish
  • MA 50: 7585.51 | Positive Crossover | Bullish

Simple:

  • MA 5: 7702.26 | Positive Crossover | Bullish
  • MA 20: 7645.95| Positive Crossover | Bullish
  • MA 50: 7565.21 | Positive Crossover | Bullish

RSI (Relative Strength Index): 61.05| Buy Zone| Bullish

Stochastic Oscillator: 52.91|BuyZone | Neutral

Resistance And Support Levels:

  • R1: 7704.5 | R2: 7836.5
  • S1: 7600.9| S2: 7501.4

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 7730.9 | Take Profit: 7836.5| Stop Loss: 7676.1.

Elsewhere in the Indices Market:

Asian stocks decline as Wall Street pulls back, concluding its record-setting rally.

The Shanghai composite is up at 0.57%. Overall, the Singapore MSCI is down 0.14% to 273.48. Over in Hong Kong, the Hang Seng Index up 0.04% to 16,621.13. In Japan, the Nikkei 225 down 1.59% to 33,140.47, while the Topix index was down 1.00% to 2,325.98. South Korea’s Kospi down 0.55% to 2,600.02. Australia S&P/ASX 200 is down 0.45% to, 7,504.10.

European stocks decline as investors secure profits in anticipation of the holiday break.

The DAX futures contract in Germany traded 0.56 lower, CAC 40 futures in France down 0.51% to 7,544.91, and the UK 100 futures contract in the U.K. down 0.36% to 7,688.22.

On Wednesday, U.S. stocks showed a mix of results as investors paused amid a rally fuelled by hopes of a rate cut.

Throughout most of Wednesday, there were indications that stocks might continue their strong rally. However, it concluded differently, with all three major U.S. indexes ending the day in negative territory.

Indexes: Dow up 0.04%, S&P 500- up 0.05%, Nasdaq up 0.23%.

Corporate News:

Netflix, Inc. (NFLX) down 1.16% at 489.27, Tesla, Inc (TSLA) down 3.92% at 247.14, Apple Inc. (AAPL) down 1.07% at 194.83. Goldman Sachs Group Inc (GS) down 1.29% at 377.52, Morgan Stanley (MS) down 0.85% at 91.14.

Key Economic Events & Data Release Today:

(USD) Initial Jobless Claims Forecast 214K, Previous 202K at 19:00.

(CAD) Retail Sales (MoM) (Oct) Previous 0.6% at 19:00.

(USD) GDP (QoQ) (Q3) Forecast 5.2%, Previous 2.1% at 19:00.

(CAD) Core Retail Sales (MoM) (Oct) Forecast 0.5%, Previous 0.2% at 19:00.