Two trades to watch: Dax, Nasdaq
Fiona Cincotta February 3, 2021 4:13 PM
Dax rises on global recovery hopes. Nasdaq futures return to ascending channel after Amazon & Alphabet beat forecasts.
Dax rises on global recovery optimism
Dax technical analysis
The DAX has been trending lower since early January, before rebounding off 13270.
The Dax price has extended its recovery through the 50 and 100 sma on the 4 hour chart and has also moved above the descending trend line negating the near term bearish trend.
The RSI is supportive of further upside, sitting over 50 and pointing northwards but still below overbought territory.
Immediate resistance is seen at 14000 and a move above this level could see the Dax gain traction towards its all time high of 14137.
Nasdaq futures advance after Amazon & Alphabet results
The Nasdaq resumed its upward trajectory as the focus shifts back to earnings and away from the retail trader short squeeze frenzy of last week.
Alphabet and Amazon posted impressive Q4 earnings besting on both the top & bottom line, rising 7.7% and 1.3% respectively helping to lift Nasdaq futures.
US vaccination drive is picking up pace with 32.2 million people vaccinated.
US ADP data coming up
Nasdaq technical analysis
After rebounding off its 50 sma on the daily chart, the Nasdaq has returned to its ascending channel. The bull trend remains firmly intact and is well supported by the 50 sma. The RSI is also in bullish territory and indicative of further gains at 62.
Immediate resistance can be seen at 13610 all time high reached last week before 13775 the upper band of the ascending trendline is tested and the bulls target 14000 round number.
On the downside, 13120 the lower ban of the ascending channel offers support ahead of the 50 sma at 12800.
To read more on the outlook of tech stocks across the coming year click here
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.