. Weekly Index Analysis - Global indices ride the 'Santa Rally,' Dow eyes records, FTSE retraces.

Weekly Index Analysis – Global indices ride the ‘Santa Rally,’ Dow eyes records, FTSE retraces.

Weekly Index Analysis – Global indices ride the ‘Santa Rally,’ Dow eyes records, FTSE retraces.

23 Dec 2023

Introduction:

In the global indices market, Asian stocks post modest weekly gains while keeping an eye on US inflation. Notable movements include the Hang Seng Index in Hong Kong rising by 2.38%. European shares close slightly higher ahead of the Christmas holiday, with DAX futures in Germany remaining flat. Wall Street anticipates the ‘Santa Rally’ as US stocks linger near record levels to conclude 2023 with substantial gains.

Market In Focus for the Next Week – Dow Jones

US equities were mixed at the close of Friday, the Dow Jones Industrial Average lost 0.05%.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37609.48 | Positive Crossover | Bullish
  • MA 20: 36748.09 | Positive Crossover | Bullish
  • MA 50: 35701.01 | Positive Crossover | Bullish

Simple:

  • MA 5: 37692.05 | Positive Crossover | Bullish
  • MA 20: 36661.03| Positive Crossover | Bullish
  • MA 50: 35107.65 | Positive Crossover | Bullish

RSI (Relative Strength Index): 76.09| Buy Zone| Bullish

Stochastic Oscillator: 14.53|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 37991.18 | R2: 38764.01
  • S1: 36909.22| S2: 35807.94

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit: 37044.47 | Take Profit: 37991.18| Stop Loss: 36445.52.

S&P 500:

US stock exhibited mixed movements on Friday as investors approached the Christmas holiday weekend. The S&P 500 concluded the day higher in anticipation of the extended holiday break.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4779.09 | Positive Crossover | Bullish
  • MA 20: 4675.55 | Positive Crossover | Bullish
  • MA 50: 4559.50 | Positive Crossover | Bullish

Simple:

  • MA 5: 4791.09 | Positive Crossover | Bullish
  • MA 20: 4658.77| Positive Crossover | Bullish
  • MA 50: 4490.58 | Positive Crossover | Bullish

RSI (Relative Strength Index): 73.03| Buy Zone| Bullish

Stochastic Oscillator: 47.09|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 4793.64 | R2: 4967.04
  • S1: 4637.33| S2: 4424.86

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 4664.20 | Take Profit: 4793.64| Stop Loss: 4568.95.

FTSE 100:

Following four successive days of upward movement, the FTSE 100 is retracing as investors engage in profit-taking ahead of the Christmas holiday.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7685.08 | Positive Crossover | Bearish
  • MA 20: 7590.54 | Positive Crossover | Bullish
  • MA 50: 7533.19 | Positive Crossover | Bullish

Simple:

  • MA 5: 7685.66 | Positive Crossover | Bullish
  • MA 20: 7564.30| Positive Crossover | Bullish
  • MA 50: 7448.47 | Positive Crossover | Bullish

RSI (Relative Strength Index): 67.55| Buy Zone| Bullish

Stochastic Oscillator: 92.84|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 7719.7 | R2: 7917.5
  • S1: 7550.2| S2: 7387.7

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 7758.6 | Take Profit: 7917.5| Stop Loss: 7670.3.

DAX 40:

The DAX 40 is still trading slightly below its record high set in mid-December; it has moved just above 17,000 and is still above Wednesday’s low of 16,595.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16890.52 | Negative Crossover | Bearish
  • MA 20: 16639.62 | Positive Crossover | Bullish
  • MA 50: 16191.09 | Positive Crossover | Bullish

Simple:

  • MA 5: 16887.00 | Negative Crossover | Bearish
  • MA 20: 16654.65| Positive Crossover | Bullish
  • MA 50: 15885.12 | Positive Crossover | Bullish

RSI (Relative Strength Index): 68.01| Buy Zone| Bullish

Stochastic Oscillator: 7.04|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 17107.9 | R2: 17563.4
  • S1: 16618.3| S2: 16128.6

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 16663.8 | Take Profit: 17107.9| Stop Loss: 16379.1.

Elsewhere in the Indices Market

Asian stocks see a slim weekly gain, awaiting US inflation.

The Shanghai composite is down at 0.56%. Overall, the Singapore MSCI is up 1.87% to 278.82. Over in Hong Kong, the Hang Seng Index is up by 2.38% to 16,792.19. In Japan, the Nikkei 225 was up 0.87% to 32,970.55, while the Topix index was up 0.34% to 2,332.50. South Korea’s Kospi up 0.76% to 2,469.63. Australia S&P/ASX 200 is down 0.033% to, 7,501.60.

European shares end slightly higher ahead of the Christmas holiday.

The DAX futures contract in Germany traded 0.11% flat, CAC 40 futures in France down 0.03% to 7,568.82 and the UK 100 futures contract in the U.K. up 0.04% to 7,697.51.

Wall St week ahead Wall Street awaits ‘Santa Rally’ with US stocks near records.

Wall Street is relying on the anticipated Santa Claus Rally to propel markets to record highs as they conclude 2023 with robust gains.

Indexes: Dow down 0.05%, S&P up 0.17%, Nasdaq up 0.19%.

Corporate News:

Tesla (TSLA) is down 0.77% at 252.54, Apple (AAPL) is down 0.55% at 193.60, and Morgan Stanley (MS) is down 0.18% at 92.41. JPMorgan Chase & Co (JPM) is down 0.060% at 167.40, and Goldman Sachs Group Inc, (GS) is up 0.021% at 380.65.

Key Economic Events & Data Release for Upcoming Week:

(JPY) Retail Sales (YoY) (Nov) (Thursday).

(USD) Initial Jobless Claims (Thursday).

(USD) Pending Home Sales (MoM) (Nov) (Thursday)

(USD) Crude Oil Inventories (Thursday).