. Weekly Index Analysis - Nvidia boosts global markets, Asia leads surge.

Weekly Index Analysis – Nvidia boosts global markets, Asia leads surge.

Weekly Index Analysis – Nvidia boosts global markets, Asia leads surge.

24 Feb 2024

Introduction:

Global markets experienced a surge, driven by Nvidia’s impressive results, with Asian stocks rising and setting the stage for a week of potential gains. While European markets consolidated after Nvidia’s influence, U.S. stock futures indicated a mixed opening, with attention remaining on the chip giant’s impact on the ongoing rally fuelled by excitement over artificial intelligence technology.

Market In Focus for the Next Week – Dow Jones

The Dow Jones progressed as most of its index components registered upward movements.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38986.48 | Positive Crossover | Bullish
  • MA 20: 38800.95 | Positive Crossover | Bullish
  • MA 50: 38704.06 | Positive Crossover | Bullish

Simple:

  • MA 5: 38917.05 | Positive Crossover | Bullish
  • MA 20: 38800.95| Positive Crossover | Bullish
  • MA 50: 38704.31 | Positive Crossover | Bullish

RSI (Relative Strength Index): 68.85| Buy Zone| Bullish

Stochastic Oscillator: 95.51| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 39321.58 | R2: 40002.57
  • S1: 38829.76| S2: 38073.10

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy: 38583.84 | Take Profit: 39208.09| Stop Loss: 38224.43.

S&P 500:

The S&P 500 reached fresh highs, persisting in its rally and trying to establish itself above the 5100 level.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5069.15 | Positive Crossover | Bullish
  • MA 20: 5037.62 | Positive Crossover | Bullish
  • MA 50: 5016.26 | Positive Crossover | Bullish

Simple:

  • MA 5: 5056.99 | Positive Crossover | Bullish
  • MA 20: 5037.62| Positive Crossover | Bullish
  • MA 50: 5016.26| Positive Crossover | Bullish

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

Stochastic Oscillator: 90.12|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 5122.52 | R2: 5218.92
  • S1: 5018.09| S2: 4927.05

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy: 5018.09 | Take Profit: 5109.13| Stop Loss: 4961.86.

FTSE 100:

FTSE 100 ends the day higher on Friday but experiences a weekly decline.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7698.00 | Positive Crossover | Bullish
  • MA 20: 7698.59 | Positive Crossover | Bullish
  • MA 50: 7653.23 | Positive Crossover | Bullish

Simple:

  • MA 5: 7697.78 | Positive Crossover | Bullish
  • MA 20: 7698.59| Positive Crossover | Bullish
  • MA 50: 7653.25| Positive Crossover | Bullish

RSI (Relative Strength Index): 58.44| Buying Zone| Buy

Stochastic Oscillator: 32.35|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 7717.6 | R2: 7795.2
  • S1: 7655.2| S2: 7574.3

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:   Limit Buy: 7704.1 | Take Profit: 7795.2| Stop Loss: 7658.6.

DAX 40:

DAX 40 is trading at all-time highs but could undergo short-term consolidation.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17339.70 | Positive Crossover | Bullish
  • MA 20: 17218.01 | Positive Crossover | Bullish
  • MA 50: 17101.42 | Positive Crossover | Bullish

Simple:

  • MA 5: 17308.03 | Positive Crossover | Bullish
  • MA 20: 17218.01| Positive Crossover | Bullish
  • MA 50: 17101.42| Positive Crossover | Bullish

RSI (Relative Strength Index): 74.11| Positive Zone| Bullish

Stochastic Oscillator: 85.06|Buy Zone | Negative

Resistance And Support Levels:

  • R1: 17478.1 | R2: 17809.1
  • S1: 17111.2| S2: 16556.4

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 17173.8 | Take Profit: 17478.1| Stop Loss: 16994.9.

Elsewhere in the Indices Market

Asia stocks increased on Friday, setting up the world markets for a week of explosive gains as AI favorite Nvidia’s fantastic results.

The Shanghai composite is up at 0.55%. Overall, the Singapore MSCI is down 1.32% to 284.10. Over in Hong Kong, the Hang Seng Index down 0.10% to 16,725.86. In Japan, the Nikkei 225 was up 2.19% to 39,098.68, while the Topix index was up 1.27% to 2660.71. South Korea’s Kospi up 0.13% to 2,648.76. Australia S&P/ASX 200 is up 0.43% to, 7,643.60.

Friday saw a little increase in European stock markets, which were consolidating following the Nvidia-inspired advances of the previous session.

The DAX futures contract in Germany traded 0.28 higher, CAC 40 futures in France up 0.70% to 7,966.68 and the UK 100 futures contract in the U.K. up 0.28% to 7,706.28.

U.S. Stock Futures Mixed After Nvidia Rally.

Friday’s opening in the U.S. stock markets appeared poised for a calm start following a robust rally the day before. The focus is expected to remain on Nvidia, the chip maker, as investors assess the sustainability of the surge fueled by enthusiasm for artificial intelligence technology.

Indexes: Dow up 0.05%, S&P 500- up 0.13%, Nasdaq down 0.23%.

Corporate News:

Tesla (TSLA) is down 2.76% at 191.97, Apple (AAPL) is down 1.00% at 182.52, Morgan Stanley (MS) up at 0.82% at 86.55. JPMorgan Chase & Co (JPM) is up 0.50% at 183.99, and Goldman Sachs Group Inc, (GS) is up 0.15% at 391.05.

Key Economic Events & Data Release for Upcoming Week:

(USD) Building Permits (Monday)

(USD) Core Consumer Confidence (Tuesday)

(NZD) RBNZD Interest Rate Decision (Wednesday)

(NZD) RBNZ Rate Statement (Wednesday)

(USD) GDP (QoQ) (Q4) (Wednesday)

(AUD) Retail Sales (MoM) (Jan) (Thursday)