. Weekly Index Analysis - Tech stocks drive global market surge.

Weekly Index Analysis – Tech stocks drive global market surge.

Weekly Index Analysis – Tech stocks drive global market surge.

02 Mar 2024

Introduction:

Asian stock markets show positive momentum, despite a slowdown in China’s factory activity. The Shanghai composite rises by 0.39%, while the Nikkei 225 in Japan climbs 1.90%. European shares see a slight increase, driven by earnings relief, and U.S. stocks achieve new highs with a rally in technology stocks and declining Treasury yields on Friday.

Market In Focus for the Next Week – Dow Jones

The Dow hit four consecutive monthly gains.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38987.22 | Positive Crossover | Bullish
  • MA 20: 38848.65 | Positive Crossover | Bullish
  • MA 50: 38936.26 | Positive Crossover | Bullish

Simple:

  • MA 5: 389021.05 | Positive Crossover | Bullish
  • MA 20: 3848.65| Positive Crossover | Bullish
  • MA 50: 38396.26 | Positive Crossover | Bullish

RSI (Relative Strength Index): 60.80| Buy Zone| Bullish

Stochastic Oscillator: 51.18| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 39316.34 | R2: 40161.83
  • S1: 38350.07| S2: 37432.11

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy : 38591.64 | Take Profit: 39316.34| Stop Loss: 38205.13.

S&P 500:

On Friday, U.S. stocks experienced an upward trend, culminating in the S&P 500 reaching unprecedented levels. This surge was fueled by a boost in technology stocks, driven by sustained excitement surrounding artificial intelligence. Additionally, the market received additional backing from decreasing Treasury yields.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5091.69 | Positive Crossover | Bullish
  • MA 20: 5055.75 | Positive Crossover | Bullish
  • MA 50: 4944.45 | Positive Crossover | Bullish

Simple:

  • MA 5: 5091.33 | Positive Crossover | Bullish
  • MA 20: 5055.75| Positive Crossover | Bullish
  • MA 50: 4944.45| Positive Crossover | Bullish

RSI (Relative Strength Index): 68.44| Bullish Zone| Positive

Stochastic Oscillator: 93.09|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 5144.98 | R2: 5311.59
  • S1: 4959.44| S2: 4773.90

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 4985.95 | Take Profit: 5144.98| Stop Loss: 4898.86.

FTSE 100:

Throughout the week, the FTSE 100 index maintained a narrow range, despite the release of financial results by major constituents such as IAG, Abrdn, Croda, Just Eat Takeaway, St. James Place, and the LSE.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7674.00 | Positive Crossover | Bullish
  • MA 20: 7658.92 | Positive Crossover | Bullish
  • MA 50: 7647.36 | Positive Crossover | Bullish

Simple:

  • MA 5: 7693.52 | Positive Crossover | Bullish
  • MA 20: 7658.92| Positive Crossover | Bullish
  • MA 50: 7647.36| Positive Crossover | Bullish

RSI (Relative Strength Index): 53.11| Buying Zone| Buy

Stochastic Oscillator: 52.87|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 7697.0 | R2: 7816.2
  • S1: 7604.6| S2: 7494.3

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:   Limit Buy: 7717.9 | Take Profit: 7816.2| Stop Loss: 7664.2.

DAX 40:

The DAX index in Germany achieves record-breaking levels amid the looming threat of a recession.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17513.47 | Positive Crossover | Bullish
  • MA 20: 17259.13 | Positive Crossover | Bullish
  • MA 50: 17106.22 | Positive Crossover | Bullish

Simple:

  • MA 5: 17464.09 | Positive Crossover | Bullish
  • MA 20: 17259.35| Positive Crossover | Bullish
  • MA 50: 17106.22| Positive Crossover | Bullish

RSI (Relative Strength Index): 76.96| Positive Zone| Bullish

Stochastic Oscillator: 100.00|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 17425.0 | R2: 17834.9
  • S1: 17081.5| S2: 16649.3

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 17480.4 | Take Profit: 17834.9| Stop Loss: 17269.8.

Elsewhere in the Indices Market

Asian stock markets observed mostly positive trends, China Factory Activity Slows.

The Shanghai composite is up at 0.39%. Overall, the Singapore MSCI up 0.62% to 283.25. Over in Hong Kong, the Hang Seng Index up 0.47% to 16,589.44. In Japan, the Nikkei 225 up 1.90% to 39,910.82, while the Topix index was up 1.26% to 2709.42. South Korea’s Kospi down 0.37% to 2,642.36. Australia S&P/ASX 200 up 0.61% to, 7,745.60.

European shares experience a slight increase fuelled by relief in earnings.

The DAX futures contract in Germany traded 0.32 higher, CAC 40 futures in France up 0.09% to 7,934.17 and the UK 100 futures contract in the U.K. up 0.69% to 7,682.50.

Equities rise, while yields decline as data supports rate cut bets.

On Friday, U.S. stocks experienced an increase, with the S&P 500 and Nasdaq achieving new record highs. The surge was propelled by a rally in technology stocks driven by sustained enthusiasm for artificial intelligence, further aided by the decline in Treasury yields.

Indexes: Dow up 0.23%, S&P 500- up 0.80%, Nasdaq up 1.14%.

Corporate News:

Tesla (TSLA) up 0.38% at 202.64, Apple (AAPL) down at 0.60% at 179.66, Morgan Stanley (MS) up at 0.51% at 86.48. JPMorgan Chase & Co (JPM) down 0.41% at 185.29, Goldman Sachs Group Inc, (GS) down 0.24% at 388.10.

Key Economic Events & Data Release for Upcoming Week:

(CHF) CPI (MoM) (Feb) (Monday)

(JPY) Tokyo Core CPI (YoY) (Feb) (Tuesday)

(GBP) Service PMI (Feb) (Tuesday)

(USD) ISM Manufacturing PMI (Feb) (Tuesday)

(AUD) GDP (QoQ) (Q4) (Wednesday)

(AUD) Retail Sales (Wednesday)

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

(CAD) BoC Interest Rate Decision (Wednesday)

(USD) JOLTs Job Openings at (Jan) (Wednesday)

(EUR) German Factory Orders (MoM) (Jan) Forecast –6.5%, Previous 8.9% at 12:30. (Thursday)