. Weekly Index Analysis -Tokyo soars, Europe slumps. Wall Street triumphs.

Weekly Index Analysis – Tokyo soars, Europe slumps. Wall Street triumphs.

Weekly Index Analysis – Tokyo soars, Europe slumps. Wall Street triumphs.

10 Feb 2024

Introduction:

In the dynamic world of global indices, Friday saw a surge in Asian stocks, notably Tokyo’s index hitting a 34-year high. Meanwhile, European markets faced a third consecutive decline, but Wall Street celebrated as the S&P 500 triumphantly closed above 5,000, setting a new record and ending the week on a high note.

Market In Focus for the Next Week – Dow Jones

On Friday, Dow Jones experienced a decline, as there was a lack of buyer interest in defensive sectors.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 38736.46 | Negative Crossover | Bearish
  • MA 20: 38665.22 | Positive Crossover | Bullish
  • MA 50: 38400.36 | Positive Crossover | Bullish

Simple:

  • MA 5: 38739.85 | Negative Crossover | Bearish
  • MA 20: 38665.22| Positive Crossover | Bullish
  • MA 50: 38400.31 | Positive Crossover | Bullish

RSI (Relative Strength Index): 56.95| Buy Zone| Bullish

Stochastic Oscillator: 74.38| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 38950.97 | R2: 39512.70
  • S1: 38223.27| S2: 37355.15

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Limit Buy : 38299.87 | Take Profit: 38950.97| Stop Loss: 37891.34.

S&P 500:

The S&P 500 surpassed the crucial 5000 level as the robust rally persisted.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 5015.25 | Positive Crossover | Bullish
  • MA 20: 4988.50 | Positive Crossover | Bullish
  • MA 50: 4938.70 | Positive Crossover | Bullish

Simple:

  • MA 5: 5014.33 | Positive Crossover | Bullish
  • MA 20: 4988.50| Positive Crossover | Bullish
  • MA 50: 4838.47| Positive Crossover | Bullish

RSI (Relative Strength Index): 74.63| Bullish Zone| Positive

Stochastic Oscillator: 99.86|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 5046.27 | R2: 5119.95
  • S1: 4960.30| S2: 4867.32

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Limit Buy : 4972.58 | Take Profit: 5046.27| Stop Loss: 4923.46.

FTSE 100:

FTSE 100 lags further behind its international peers in disappointing start to 2024.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7631.66 | Negative Crossover | Bearish
  • MA 20: 7650.65 | Negative Crossover | Bearish
  • MA 50: 7606.41 | Negative Crossover | Bearish

Simple:

  • MA 5: 7646.33 | Negative Crossover | Bearish
  • MA 20: 7650.65| Negative Crossover | Bearish
  • MA 50: 7606.66| Negative Crossover | Bearish

RSI (Relative Strength Index): 40.36| Buying Zone| Buy

Stochastic Oscillator: 0.00|Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 7697.0 | R2: 7775.1
  • S1: 7600.3| S2: 7477.6

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Stop Sell : 7570.6 | Take Profit: 7477.6| Stop Loss: 7635.7.

DAX 40:

Germany’s DAX Index surged, propelled by strong corporate earnings and decisive actions from central banks.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 17041.10 | Negative Crossover | Bearish
  • MA 20: 17035.08 | Negative Crossover | Bearish
  • MA 50: 16959.26 | Positive Crossover | Bullish

Simple:

  • MA 5: 17058.09 | Negative Crossover | Bearish
  • MA 20: 17035.08| Negative Crossover | Bearish
  • MA 50: 16959.09| Positive Crossover | Bullish

RSI (Relative Strength Index): 51.05| Positive Zone| Bullish

Stochastic Oscillator: 50.07|Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 17158.9 | R2: 17399.4
  • S1: 16965.2| S2: 16624.6

Overall Sentiment: Neutral | Market Direction: Sell

Trade Suggestion:  Stop Sell : 16891.7 | Take Profit: 16624.6| Stop Loss: 17072.1.

Elsewhere in the Indices Market

On Friday, Asian stocks experienced predominantly positive momentum, with Tokyo’s key index briefly reaching a 34-year peak.

The Shanghai composite is up at 0.28%. Overall, the Singapore MSCI down 0.41% to 277.50. Over in Hong Kong, the Hang Seng Index down 0.83% to 15,746.58. In Japan, the Nikkei 225 up 0.09% to 36,897.42, while the Topix index was down 0.19% to 2557.88. South Korea’s Kospi up 0.41% to 2,620.32. Australia S&P/ASX 200 up 0.073% to, 7,644.80.

European stocks decline for the third consecutive session.

The DAX futures contract in Germany traded 0.1 higher, CAC 40 futures in France down 0.15% to 7,654.11 and the UK 100 futures contract in the U.K. up 0.10% to 7,602.78.

Wall Street confidently surpasses its recent achievement, with the S&P 500 concluding above the 5,000 mark.

Friday’s further advances in U.S. stocks propelled Wall Street to achieve another record, marking a milestone and concluding the week on a positive note.

Indexes: Dow down 0.26%, S&P 500- up 0.48%, Nasdaq up 1.20%.

Corporate News:

Tesla (TSLA) up 2.12% at 193.57, Apple (AAPL) up at 0.41% at 188.85, Morgan Stanley (MS) up at 0.28% at 85.89. JPMorgan Chase & Co (JPM) up 0.12% at 175.01, Goldman Sachs Group Inc, (GS) down 0.20% at 384.26.

Key Economic Events & Data Release for Upcoming Week:

(GBP) BoE Gov Bailey Speaks at 23:30 (Monday)

(GBP) Average Earning Index +Bonus (dec) (Tuesday)

(USD) CPI (MoM) (Jan) (Tuesday)

(USD) Core CPI (MoM) (Jan) (Tuesday)

(GBP) CPI (YoY) (Jan) (Wednesday)

(EUR) GDP (YoY) (Q4) (Wednesday)

(JPY) GDP (QoQ) (Q4) (Thursday)

(AUD) Employment Change (Jan) (Thursday)

(GBP) GDP (YoY) (Q4) (Thursday)

(GBP) GDP (QoQ) (Q4) (Thursday)

(GBP) GDP (MoM) (Dec) (Thursday)

(GBP) Manufacturing Production (MoM) (Dec) (Thursday)