Daily Stock Indices Technical Trend Bias/Key Levels (Wed 13 Feb)

Euphoric rally extends in S&P 500, Nikkei 225 & Hang Seng.

Stock Indices (CFD) – Mix bag with euphoric rally extension in S&P 500

  • US SP 500 – Trend bias: Up. The Index has a daily close above the 2740 key medium-term resistance in yesterday, 12 Feb U.S. session (closed at 2744). No clear signs of bullish exhaustion at this juncture. Bullish bias in any dips above 2729/26 key short-term support (minor ascending trendline from 08 Feb 2019 swing low + 50% Fibonacci retracement of the recent push up from 11 Feb 2019 U.S. session low of 2703 to today, 13 Feb Asian session current intraday high of 2755) for a further potential push up to target the next intermediate resistances at 2762 follow by 2780 (0.618 & 0.764 Fibonacci expansion from the 26 Dec 2018 low). On the other hand, failure to hold at 2726 negates the bullish tone for a deeper pull-back towards the next near-term support at 2680/77 (minor swing low area of 08 Feb 2019 + former minor swing high areas of 12 Dec 2018/18 Jan 2019 high).
  • Japan 225 – Trend bias: Up. Clearance above the 21020 key medium-term pivotal resistance has invalidated the medium-term bearish scenario for a retest of its 26 Dec 2018 low. Flip to a bullish bias in any dips above 21000/20900 key short-term support (the former range resistance from 21 Jan/05 Feb 2019) for a further potential push up to target the next intermediate resistance at 21420 (Fibonacci expansion cluster). On the other hand, failure to hold at 21000/20900 indicates a failure bullish breakout for a slide back towards the 20500/370 near-term support (the minor congestion area of 11 Feb 2019).
  • Hong Kong 50 - Trend bias: Up. Clearance above the 28000/215 key medium-term pivotal resistance has invalidated the medium-term bearish scenario for a retest towards the 25200/25000 range support in place since 26 Oct 2018 low. Flip to a bullish bias in any dips above the 28000 key short-term support (also the minor ascending trendline from 14 Jan 2019 low) for a further potential push up to target the 29100 lower limit of the long-term pivotal resistance (former medium-term swing low area of 09 Feb 2018 low + 50% Fibonacci retracement of the down move from 29 Jan 2018 high to 26 Oct 2018 low). On the other hand, failure to hold at 28000 negates the bullish tone for a deeper pull-back towards the next support at 27300/200 (the former swing high area of 03 Dec 2018).
  • Australia 200 - Trend bias: Push down within medium-term uptrend. Underperformer as it has failed to breach above last week high of 6107. The 4-hour Stochastic oscillator has started to reverse down from its overbought zone and still has further room to manoeuvre to the downside before it reaches an extreme oversold level. Bearish bias below 6107 key short-term resistance for a further potential slide to test the 5955 near-term support (the minor ascending trendline from 02 Jan 2019 low + former range resistance from 17 Oct/12 Nov 2018 high). On the other hand, a break above 6107 sees a further squeeze up towards the 6150/200 key long-term pivotal resistance.
  • Germany 30 – Trend bias: Push down within medium-term uptrend. Key short-term resistance remains at 11205 (former minor swing high areas of 01/04 Feb 2019 + Fibonacci retracement/expansion cluster, click here for more details as per highlighted in yesterday’s Featured Trade) and a break below 11115 (yesterday, 12 Feb swing low area + minor ascending trendline from 08 Feb 2019 low) is likely to reinforce a minor mean reversion decline towards the near-term supports of 11045 follow by 10960. On the other hand, a clearance above 11205 invalidates the bearish scenario for a further squeeze up towards 11310 and even the lower limit of the key medium-term pivotal resistance zone at 11390.                        

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