Technical Analysis with Candlestick Charts – 04 February 2022

Technical Analysis with Candlestick Charts – 04 February 2022

   Asia Pacific stocks were mixed on Friday morning. The Shanghai composite is down 0.97% at 3,361.43. Overall, the Singapore MSCI up 0.31% at 341.65. Over in Hong Kong, the Hang Seng Index up 2.84% at 24,539.00. In Japan, the Nikkei 225 up 0.77% at 27,410.00, while the Topix index is up 0.55% at 1930.00. South Korea’s Kospi up 1.57% to 2750.26. Australia S&P/ASX 200 up 0.60% at 7120.20.

European equities Thursday closing. The DAX futures contract in Germany traded down 1.57% at 15368.47, CAC 40 futures down 1.54% at 7005.64 and the UK 100 futures contract in the U.K. down 0.71% at 7,528.85.

In U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.45% at 35111.17. The S&P 500 down 2.44% at 4477.43 and the Nasdaq 100 down 4.22% at 14501.11, NYSE closes down 1.34% at 16677.39.

In the Forex market, GBPUSD down 0.01% at 1.35923. The USDJPY down 0.01% at 114.968. The USDCHF up 0.10% at 0.92021. EURUSD up 0.21% at 1.14589, EUR/GBP up 0.24% at 0.84293. The USD/CNY flat at 6.3605 at the time of writing.

In the commodity market U.S. Gold futures up 0.16% at $1,807.84. Elsewhere, Silver futures up 0.47% at $22.519 per ounce, Platinum flat at $1034.50 per ounce, and Palladium up 0.43% at $2339.50.

Crude Oil up on Friday; Brent crude oil up 0.42% at $91.37 per barrel while U.S. West Texas Intermediate (CLc1) up 0.50% at $89.47.

In the Cryptocurrency Markets, Bitcoin at 38011.52 up 1.85%, Ethereum up 3.43% at 2790.16, Litecoin at 112.72 up 1.49%, at the time of writing.

TOP STOCKS TO WATCH OUT TODAY:

Discovery Inc. up 4.47% at $28.93, DXC Technology Co. up 13.75% at $34.91,

Exelon Corp. up 2.17% to $43.79, Meta Platforms Inc. down 26.39% at $237.76,

Amazon.com Inc. down 7.81% to $2,776.91, Marvell Technology Inc. down 7.357% at $68.63.

Economic news:

US: U.S. President Joe Biden will sign an executive order on Friday requiring “project labor agreements” in federal construction projects over $35 million, a potential boost to workers and unions that negotiate these deals, and a shift the administration says will speed up building times.

The order will apply to $262 billion in federal construction contracting and impact nearly 200,000 workers, the White House said late on Thursday, confirming news first reported by Reuters.

Project labor agreements are collective bargaining agreements between building trade unions and contractors, which set wages, employment conditions, and dispute resolution on specific projects. Democratic presidents in the past have typically supported applying such agreements to the massive U.S. federal contracting budget, while Republican presidents have rescinded them.

The order, which will go into effect immediately, comes on the heels of a $1 trillion infrastructure bill signed into law by Biden that invests in the country’s roads, ports and bridges.

Eurozone: The Bank of Japan must keep monetary policy ultra-loose as inflation remains well below that of other economies, Governor Haruhiko Kuroda said, brushing aside the view it could follow in the footsteps of more hawkish U.S. and European peers.

Mounting inflation risks have prompted central banks across the globe, including the U.S. Federal Reserve and the Bank of England, to withdraw crisis-mode stimulus measures and raise interest rates.

Inflation remains subdued in Japan due to a delay in the economy’s recovery from the coronavirus pandemic, and the public’s sticky deflationary mindset where households and firms act on the assumption that prices won’t rise much, Kuroda said.

“In Japan, nominal wages haven’t risen much. It’s hard to see inflation sustainably reach our 2% target unless wages rise in tandem with prices,” Kuroda told parliament on Friday.

“It’s important to maintain powerful monetary easing to support the economy, and help generate steady wage and price growth,” he said.

The remarks came after the European Central Bank, considered among laggards in dialling back stimulus, surprised markets with a hawkish shift by acknowledging inflation risks and opening the door to a possible rate hike this year.

Important Data: US Nonfarm Payrolls (Jan) today at 8:30 this time estimated 150K, previously which was 199K. CANADA Employment Change (Jan) today at 8:30 this time estimated -117.5K, previously which was 54.7K. UK Construction PMI (Jan) today at 4:30 this time estimated 54.3, previously which was 54.3. EUROZONE Retail Sales (MoM) (Dec) today at 5:00 this time estimated -0.5%, previously which was 1.0%.

TECHNICAL SUMMARY

GBPUSD

TRADE SUGGESTION- BUY AT 1.35871, TAKE PROFIT AT 1.36192 AND STOP LOSS AT 1.35557

EURUSD

TRADE SUGGESTION- BUY AT 1.14536, TAKE PROFIT AT 1.14809 AND STOP LOSS AT 1.14327

EURGBP

TRADE SUGGESTION- BUY AT 0.84278, TAKE PROFIT AT 0.84510 AND STOP LOSS AT 0.84134

EURJPY

TRADE SUGGESTION- BUY AT 131.859, TAKE PROFIT AT 132.180 AND STOP LOSS AT 131.560

FTSE 100

TRADE SUGGESTION- BUY AT 7510.30 TAKE PROFIT AT 7555.40 AND STOP LOSS AT 7497.00.

WTI CRUDE OIL

TRADE SUGGESTION- BUY AT 89.60 TAKE PROFIT AT 89.71 AND STOP LOSS AT 89.42

GOLD

TRADE SUGGESTION- SELL AT 1807.42, TAKE PROFIT AT 1798.09 AND STOP AT 1812.55

ETHEREUM

TRADE SUGGESTION- BUY AT 2832.70 TAKE PROFIT AT 3036.24 AND STOP AT 2623.30

About Author