. Weekly Index Analysis - Nasdaq's ride, S&P records, trade insights.

Weekly Index Analysis – Nasdaq’s ride, S&P records, trade insights.

Weekly Index Analysis – Nasdaq’s ride, S&P records, trade insights.

27 Jan 2024

Introduction:

Asian stocks are poised for a weekly gain, with attention focused on the upcoming US inflation test. The Shanghai composite has risen by 0.14%. Across the region, the Singapore MSCI is up 0.76% at 279.55. European equities have reached a two-year peak, driven by positive economic indicators and strong earnings reports. On Wall Street, there is an uptrend fueled by robust GDP data. The strong start to the year for the US stock market faces a significant challenge next week, with a busy schedule featuring major tech earnings, the Federal Reserve’s monetary policy meeting, and the eagerly awaited employment report.

Market In Focus for the Next Week – Nasdaq 100

Nasdaq 100 futures experienced a decline on Friday morning following Intel’s issuance of an outlook that failed to meet Wall Street’s expectations.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17560.54 | Negative Crossover | Bearish
  • MA 20: 17462.35 | Positive Crossover | Bullish
  • MA 50: 17066.36 | Positive Crossover | Bullish

Simple:

  • MA 5: 17587.05 | Negative Crossover | Bearish
  • MA 20: 17462.37| Positive Crossover | Bullish
  • MA 50: 17066.31 | Positive Crossover | Bullish

RSI (Relative Strength Index): 60.58| Buy Zone| Bullish

Stochastic Oscillator: 2.14| Sell Zone |Negative

Resistance And Support Levels:

  • R1: 17791.70 | R2: 18176.39
  • S1: 17443.08| S2: 17058.39

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 17226.69 | Take Profit: 17719.57| Stop Loss: 16902.11.

S&P 500:

For the fifth consecutive session, the S&P 500 achieved a record closing high on Thursday, propelled by positive sentiment following data revealing robust U.S. economic growth in the fourth quarter.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4910.10 | Positive Crossover | Bullish
  • MA 20: 4878.55 | Positive Crossover | Bullish
  • MA 50: 4822.77 | Positive Crossover | Bullish

Simple:

  • MA 5: 4910.87 | Positive Crossover | Bullish
  • MA 20: 4878.57| Positive Crossover | Bullish
  • MA 50: 4822.76| Positive Crossover | Bullish

RSI (Relative Strength Index): 68.10| Bullish Zone| Positive

Stochastic Oscillator: 18.76|Sell Zone | Negative

Resistance And Support Levels:

  • R1: 4929.04 | R2: 5013.34
  • S1: 4843.41| S2: 4720.30

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 4828.40 | Take Profit: 4929.04| Stop Loss: 4763.16.

FTSE 100:

FTSE 100 surges to a 10-day high, buoyed by the gains in luxury stocks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7579.04 | Positive Crossover | Bullish
  • MA 20: 7518.54 | Positive Crossover | Bullish
  • MA 50: 7593.62 | Positive Crossover | Bullish

Simple:

  • MA 5: 7569.00 | Positive Crossover | Bullish
  • MA 20: 7518.55| Positive Crossover | Bullish
  • MA 50: 7593.66| Positive Crossover | Bullish

RSI (Relative Strength Index): 67.34| Buying Zone| Buy

Stochastic Oscillator: 100|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 7690.2 | R2: 7778.6
  • S1: 7586.7| S2: 7479.4

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 7604.1 | Take Profit: 7689.6| Stop Loss: 7550.3.

Euro Stoxx 50:

European shares climbed, with technology stocks and Nokia leading the gains on the back of a better-than-expected quarterly profit. Investors interpreted the European Central Bank’s recent monetary policy meeting and news conference as indicative of a dovish shift.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 4606.95 | Positive Crossover | Bullish
  • MA 20: 4525.00 | Positive Crossover | Bullish
  • MA 50: 4498.09 | Positive Crossover | Bullish

Simple:

  • MA 5: 4606.06 | Positive Crossover | Bullish
  • MA 20: 4525.00| Positive Crossover | Bullish
  • MA 50: 4498.09| Positive Crossover | Bullish

RSI (Relative Strength Index): 73.04| Positive Zone| Bullish

Stochastic Oscillator: 91.73|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 4682 | R2: 4757
  • S1: 4624| S2: 4534

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Buy Limit: 4538 | Take Profit: 4635| Stop Loss: 4501

Elsewhere in the Indices Market

Asian stocks on track for weekly gain; eyes on US inflation test.

The Shanghai composite is up at 0.14%. Overall, the Singapore MSCI is up 0.76% to 279.55. Over in Hong Kong, the Hang Seng Index is down by 1.60% to 15,952.23. In Japan, the Nikkei 225 was down 1.34% to 35,751.07, while the Topix index was down 1.35% to 2,497.65. South Korea’s Kospi up 0.33% to 2,478.54. Australia S&P/ASX 200 is up 0.48% to, 7,555.40.

European equities hit a two-year peak propelled by positive economic indicators and robust earnings reports.

The DAX futures contract in Germany traded 0.32% higher, CAC 40 futures in France up 2.28% to 7,634.14 and the UK 100 futures contract in the U.K. up 1.40% to 7,635.09.

Wall Street rises on strong GDP data.

The robust beginning of the year for the U.S. stock market will encounter a significant challenge next week with a busy line-up featuring major tech earnings, the Federal Reserve’s monetary policy meeting, and the highly anticipated employment report.

Indexes: Dow up 0.16%, S&P down 0.07%, Nasdaq down 0.36%.

Corporate News:

Tesla (TSLA) is up 0.34% at 183.25, Apple (AAPL) is down 0.90% at 192.42, and Morgan Stanley (MS) is down 0.33% at 87.73. JPMorgan Chase & Co (JPM) is down 0.38% at 172.28, and Goldman Sachs Group Inc, (GS) is down 1.28% at 377.79.

Key Economic Events & Data Release for Upcoming Week:

(AUD) Retail Sales (MoM) (Dec) (Monday)

(EUR) German GDP (QoQ) (Q4) (Tuesday)

(EUR) GDP(QoQ) (Q4) (Tuesday)

(USD) CB Consumer Confidence (Jan) (Tuesday)

(AUD) CPI (QoQ) (Q4) (Tuesday)

(EUR) German CPI (MoM) (Jan) (Wednesday)

(USD) ADP Nonfarm Employment Change (Jan) (Wednesday)

(CAD) GDP (MoM) (Nov) (Wednesday)

(USD) Fed Interest Rate Decision (Wednesday)

(USD) FOMC Statement (Wednesday)

(USD) FOMC Press Conference (Wednesday)