. Weekly Index Analysis - Market highs, FTSE resilience, DAX fluctuations.

Weekly Index Analysis – Market highs, FTSE resilience, DAX fluctuations.

Weekly Index Analysis – Market highs, FTSE resilience, DAX fluctuations.

20 Jan 2024

Introduction:

In the global indices market, Asian markets showed resilience as Wall Street recovered from earlier losses. However, the Shanghai composite experienced a slight dip, while European shares closed the week with declines as enthusiasm for rate cuts waned. In contrast, the U.S. market surged on Friday, propelling the S&P 500 to a new all-time high, fuelled by optimism in artificial intelligence and a rally in chipmakers.

Market In Focus for the Next Week – Dow Jones

Dow Jones Jumps 395 Points the index finished a second-straight week of gains.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 37862.55 | Positive Crossover | Bullish
  • MA 20: 37814.00 | Positive Crossover | Bullish
  • MA 50: 36939.98 | Positive Crossover | Bullish

Simple:

  • MA 5: 37749.05 | Positive Crossover | Bullish
  • MA 20: 37814.00| Positive Crossover | Bullish
  • MA 50: 36939.98 | Positive Crossover | Bullish

RSI (Relative Strength Index): 64.41| Buy Zone| Bullish

Stochastic Oscillator: 58.97|Buy Zone | Positive

Resistance And Support Levels:

  • R1: 38104.40 | R2: 38866.64
  • S1: 37319.06| S2: 36372.03

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Buy Limit : 37411.45 | Take Profit: 38104.40| Stop Loss: 36995.68.

S&P 500:

The S&P 500 achieves its first record high closing in two years, propelled by a surge in chipmakers.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4838.57 | Positive Crossover | Bullish
  • MA 20: 4798.22 | Positive Crossover | Bullish
  • MA 50: 4703.42 | Positive Crossover | Bullish

Simple:

  • MA 5: 4823.69 | Positive Crossover | Bullish
  • MA 20: 4798.22| Positive Crossover | Bullish
  • MA 50: 4703.42 | Positive Crossover | Bullish

RSI (Relative Strength Index): 67.01| Buy Zone| Bullish

Stochastic Oscillator: 85.3|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4907.36 | R2: 4982.94
  • S1: 4809.39| S2: 4728.21

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit : 4820.59 | Take Profit: 4907.36| Stop Loss: 4770.20.

FTSE 100:

Despite disappointing retail sales figures in the UK, indicating the largest monthly drop since January 2021, the FTSE Index managed to advance, supported by the weakened pound.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7521.34 | Negative Crossover | Bearish
  • MA 20: 7655.59 | Negative Crossover | Bearish
  • MA 50: 7563.84 | Negative Crossover | Bearish

Simple:

  • MA 5: 7518.51 | Negative Crossover | Bearish
  • MA 20: 7655.73| Negative Crossover | Bearish
  • MA 50: 7563.07 | Negative Crossover | Bearish

RSI (Relative Strength Index): 39.4| Sell Zone| Bearish

Stochastic Oscillator: 11.55|SellZone | Negative

Resistance And Support Levels:

  • R1: 7509.0 | R2: 7665.3
  • S1: 7385.1| S2: 7264.1

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Limit Sell : 7517.8 | Take Profit: 7385.1| Stop Loss: 7606.3.

DAX 40:

The DAX experiences fluctuations influenced by the European Central Bank’s hawkish stance.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 16708.52 | Positive Crossover | Bullish
  • MA 20: 16796.62 | Negative Crossover | Bearish
  • MA 50: 16479.09 | Positive Crossover | Bullish

Simple:

  • MA 5: 16681.06 | Positive Crossover | Bullish
  • MA 20: 16896.65| Negative Crossover | Bearish
  • MA 50: 16336.34 | Positive Crossover | Bullish

RSI (Relative Strength Index): 52.54| Buy Zone| Bullish

Stochastic Oscillator: 24.99|Sell Zone | Positive

Resistance And Support Levels:

  • R1: 16823.9 | R2: 17199.0
  • S1: 16606.0| S2: 16085.7

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit : 16606.0 | Take Profit: 17102.2| Stop Loss: 16315.2

Elsewhere in the Indices Market

On Friday, Asian markets mostly advanced as Wall Street recovered most of the losses incurred earlier in the week.

The Shanghai composite is down at 0.47%. Overall, the Singapore MSCI up 1.15% to 276.75. Over in Hong Kong, the Hang Seng Index down by 0.54% to 15,308.69. In Japan, the Nikkei 225 up 1.40% to 35,963.27, while the Topix index was up 0.72% to 2,510.03. South Korea’s Kospi up 1.34% to 2,472.54. Australia S&P/ASX 200 up 1.02% to, 7,421.20.

European shares close weekly declines as rate-cut euphoria fades.

The DAX futures contract in Germany traded 0.07% lower, CAC 40 futures in France down 0.40% to 7,371.64 and the UK 100 futures contract in the U.K. up 0.04% to 7,461.93.

On Friday, the U.S. market gained momentum, propelling the S&P 500 to achieve a new all-time high.

The S&P 500 achieved its highest closing record in two years on Friday, driven by a surge in chipmakers and major technology stocks amid optimism surrounding artificial intelligence.

Indexes: Dow up 1.05%, S&P up 1.23%, Nasdaq up 1.70%.

Corporate News:

Tesla (TSLA) up 0.15% at 212.19, Apple (AAPL) up at 1.55% at 191.56, Morgan Stanley (MS) up at 1.72% at 85.34. JPMorgan Chase & Co (JPM) down 0.73% at 169.05, Goldman Sachs Group Inc, (GS) down 0.53% at 377.75.

Key Economic Events & Data Release for Upcoming Week:

(JPY) BoJ Monetary Policy Statement (Tuesday)

(JPY) BoJ Press Conference (Tuesday)

(NZD) CPI (QoQ) (Q4) (Wednesday)

(EUR) German Manufacturing PMI (Jan) (Wednesday)

(USD) Manufacturing PMI (Jan) (Wednesday)

(CAD) BoC Interest Rate Decision (Wednesday)

(CAD) BoC Monetary Policy Report (Wednesday)

(EUR) CPI (YoY) (Dec) (Wednesday)

(EUR) ECB Interest Rate Decision (Jan) (Thursday)

(EUR) ECB Monetary Policy Statement (Thursday)

(USD) GDP (QoQ) (Q4) (Thursday)

(USD) Initial Jobless Claim (Thursday)

(JPY) Tokyo Core CPI (YoY) (Jan) (Friday)