Jump to content

Stock Indices Summary: DAX, FTSE & SPX Prove Tricky Markets to Navigate


MongiIG

Recommended Posts

STOCK MARKET ANALYSIS

  • Equity indices under pressure across the board.
  • BP PLC exits Russia, shares drop!
Stock Indices Summary: DAX, FTSE & SPX Prove Tricky Markets to Navigate

FUNDAMENTAL BACKDROP

Despite opening in the red, European equity indices including the DAX and FTSE have generated some bids this morning after a news release stating that “Russia is willing to negotiate with Ukraine as soon as possible”. The statement comes as a result of the West increasing sanctions on Russia including a massive decision by BP PLC pulling out of Russia via its stake in Rosneft at an estimated cost equivalent to $25bn - BP shares tanked almost 7% at the open.

With value stocks been the darlings of the European stock markets of recent (due to rising inflationary pressure), the longer the war in Ukraine persists, the more we may say a rotation into defensive stocks. These stocks generally show historical durability against tough economic conditions, making them more attractive in uncertain circumstances.

DAX DAILY CHART

DAX index daily chart

Chart prepared by Warren Venketas, IG

Resistance levels:

  • 15000
  • 20-day EMA (purple)
  • 14500

Support levels:

  • 14000

FTSE 100 DAILY CHART

FTSE 100 index daily chart

Chart prepared by Warren Venketas, IG

Resistance levels:

  • 7500.0

Support levels:

  • 7165.4
  • 6971.8

Boost your stock market knowledge with our articles on the types of stocks available, how equities impact the economy, and getting started with stock trading.

The S&P 500 index is slightly more positive than the European indices as geography play an important role in insulating many U.S. stocks from the influence of the war in Europe. From a stock perspective, investors have been in favor of U.S. stocks however, with more flow moving into U.S. Treasuries and the dollar, global stocks are coming under pressure.

The threat of greater inflation due to rising oil prices (lesser supply) traditionally weighs heavily on the tech heavy SPX as the threat of hawkish pressure (rising interest rates) from the Fed increases – negatively impacting tech stock valuations.

SPX DAILY CHART

SPX daily chart

Chart prepared by Warren Venketas, IG

Resistance levels:

  • 4600.00
  • 4500.00

Support levels:

  • 4221.45

 

 

Feb 28, 2022 |  Warren Venketas, Analyst. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • COST Elliott Wave Analysis Trading Lounge Daily Chart, Costco Wholesale Corp., (COST) Daily Chart COST Elliott Wave Technical Analysis FUNCTION: Counter Trend   MODE: Corrective STRUCTURE: ZigZag POSITION: Wave A.   DIRECTION: Downside in wave A.   DETAILS: The upside seems completed, looking for a correction in what could have been a top in wave (5) or wave 1 of (5).   COST Elliott Wave Analysis Trading Lounge 4Hr Chart, Costco Wholesale Corp., (COST) 4Hr Chart COST Elliott Wave Technical Analysis FUNCTION: Counter Trend   MODE: Corrective STRUCTURE: ZigZag POSITION: Wave {i} DIRECTION: Bottom in wave {i}. DETAILS: Looking for a bottom in wave {i} to then pullback and continue lower into at least one more leg lower in what could be either wave {iii} or some sort of wave C. Welcome to our latest Elliott Wave analysis for Costco Wholesale Corp. (COST). This analysis provides an in-depth look at COST's price movements using the Elliott Wave Theory, helping traders identify potential opportunities based on current trends and market structure. We will cover insights from both the daily and 4-hour charts to offer a comprehensive perspective on COST's market behavior.   * COST Elliott Wave Technical Analysis – Daily Chart* The daily chart suggests that the upside move appears to be completed, and we are now looking for a correction. This correction could signify the completion of a top in wave (5) or wave 1 of (5). Traders should be prepared for continued downside pressure as wave A unfolds. * COST Elliott Wave Technical Analysis – 4H Chart* The 4-hour chart indicates that we are looking for a bottom in wave {i} to then see a pullback. After this pullback, we anticipate at least one more leg lower, which could be either wave {iii} or some form of wave C.   Technical Analyst : Alessio Barretta Source  : Tradinglounge.com get trial here!  
    • Hang Seng Index: Elliott Wave Analysis Day Chart Hang Seng Index Elliott Wave Technical Analysis Function: Trend Mode: Impulsive Structure: Orange Wave 3 Position: Navy Blue Wave 3 Direction Next Higher Degrees: Orange Wave 3 (started) Details: Orange wave 2 looks completed. Now orange wave 3 of 3 is in play. Wave Cancel Invalid Level: 16044.39 The Hang Seng Index Elliott Wave Analysis for the day chart provides a detailed examination of the market's current trends and wave patterns. The analysis identifies the market's movement as part of an overall trend, indicating an impulsive mode rather than a corrective one. The specific wave structure under scrutiny is orange wave 3, which forms part of a larger navy blue wave 3. This suggests that the market is currently experiencing an upward trend characterized by successive impulsive waves. According to the analysis, orange wave 2 has completed, marking the end of the corrective phase within navy blue wave 3. With orange wave 2 concluded, the market has now entered orange wave 3, which is in progress. The direction anticipated next in this analysis is the continuation of orange wave 3, signaling further upward movement in the market. This phase, orange wave 3 of 3, indicates a strong impulsive trend within the broader wave structure, suggesting that the market is expected to continue its rise as part of the ongoing navy blue wave 3. An essential component of this analysis is the wave cancel invalid level, set at 16044.39. This level serves as a crucial reference point for traders, determining the validity of the current wave count. Should the market price move below this level, the existing wave analysis would be invalidated, necessitating a reassessment of the market's condition and potential strategic adjustments. This invalidation level is critical for risk management, providing traders with a clear threshold to monitor and ensuring that the wave analysis remains accurate. In summary, the Hang Seng Index day chart analysis identifies an upward trend in an impulsive mode characterized by orange wave 3 within navy blue wave 3. Orange wave 2 has been completed, and the market is now experiencing orange wave 3 of 3. The wave cancellation invalid level at 16044.39 is crucial for maintaining the accuracy of the current wave count and for effective risk management.   Hang Seng Index: Elliott Wave Analysis Weekly Chart Hang Seng Index Elliott Wave Technical Analysis Function: Trend Mode: Impulsive Structure: Orange Wave 3 Position: Navy Blue Wave 3 Direction Next Higher Degrees: Orange Wave 3 (started) Details: Orange wave 2 looks completed. Now orange wave 3 of 3 is in play. Wave Cancel Invalid Level: 16044.39 The Hang Seng Index Elliott Wave Analysis for the weekly chart focuses on the current trend and wave patterns in the market. The analysis identifies the market's movement as part of an impulsive trend rather than a corrective one, suggesting strong upward momentum. The primary wave structure being analyzed is orange wave 3, situated within a larger navy blue wave 3. This indicates a significant upward trend driven by successive impulsive waves. According to the analysis, orange wave 2 has been completed, marking the end of the recent corrective phase within navy blue wave 3. With orange wave 2 concluded, the market has entered orange wave 3, which is currently in progress. The expected direction in this analysis is the continuation of orange wave 3, suggesting further upward movement in the market. This phase, orange wave 3 of 3, points to a strong impulsive trend within the broader wave structure, implying that the market is likely to continue its rise as part of the ongoing navy blue wave 3. An important aspect of this analysis is the wave cancel invalid level, set at 16044.39. This level serves as a crucial reference point for traders, determining the validity of the current wave count. If the market price moves below this level, the existing wave analysis would be invalidated, requiring a reassessment of the market's condition and potential strategic adjustments. This invalidation level is vital for risk management, providing traders with a clear threshold to monitor and ensuring that the wave analysis remains accurate. In summary, the Hang Seng Index weekly chart analysis identifies a strong upward trend in an impulsive mode, characterized by orange wave 3 within navy blue wave 3. Orange wave 2 has been completed, and the market is now experiencing orange wave 3 of 3. The wave cancel invalid level at 16044.39 is critical for maintaining the accuracy of the current wave count and for effective risk management.   Technical Analyst : Malik Awais Source : Tradinglounge.com get trial here!  
    • EURUSD Day Chart Analysis EURUSD Elliott Wave Analysis - Trading Lounge Day Chart Euro/U.S. Dollar (EURUSD) Day Chart EURUSD Elliott Wave Technical Analysis Function: Counter Trend Mode: Corrective Structure: Orange Wave 2 Position: Navy Blue Wave 3 Direction Next Higher Degrees: Orange Wave 3 Details: Current Status: Orange Wave 1 appears complete. Current Phase: Orange Wave 2 is active. Wave Cancel Invalid Level: 1.06657 The EURUSD Elliott Wave analysis for the day chart examines the current market behavior and wave structure. The analysis indicates a counter-trend phase, suggesting a corrective movement within the broader trend. The specific wave structure under review is Orange Wave 2, which is part of Navy Blue Wave 3. This implies the market is in a corrective phase within a larger impulsive wave. The completion of Orange Wave 1 marks the end of an initial impulsive move within Navy Blue Wave 3. Now, the market is experiencing Orange Wave 2, a corrective wave that typically retraces some of the gains from the impulsive Wave 1. The next higher degree direction is identified as Orange Wave 3. This suggests that after the completion of Orange Wave 2, the market is expected to resume its impulsive trend with the start of Orange Wave 3. This phase will follow the corrective action of Orange Wave 2 and continue the primary trend. A critical element of this analysis is the wave cancel invalid level, set at 1.06657. This level is essential for traders as it serves as a benchmark to determine the validity of the current wave count. If the market price exceeds this level, the current wave count would be invalidated, necessitating a reassessment of the market conditions and potential repositioning. This invalidation point is crucial for risk management, providing a clear point at which traders should reconsider their analysis and strategies. Summary: The EURUSD day chart analysis identifies a corrective trend characterized by Orange Wave 2 within Navy Blue Wave 3. Orange Wave 1 is completed, and the market is now in the corrective phase of Orange Wave 2. The expected next phase is Orange Wave 3, following the completion of Orange Wave 2. The wave cancel invalid level at 1.06657 is critical for maintaining the current wave count's validity and for effective risk management.   EURUSD 4-Hour Chart Analysis EURUSD Elliott Wave Analysis - Trading Lounge 4-Hour Chart Euro/U.S. Dollar (EURUSD) 4-Hour Chart EURUSD Elliott Wave Technical Analysis Function: Counter Trend Mode: Corrective Structure: Orange Wave 2 Position: Navy Blue Wave 3 Direction Next Higher Degrees: Orange Wave 3 Details: Current Status: Orange Wave 1 appears complete. Current Phase: Orange Wave 2 is active. Wave Cancel Invalid Level: 1.06657 The EURUSD Elliott Wave analysis for the 4-hour chart examines the current market trends and wave patterns. The analysis identifies the market's movement as a counter-trend, indicating a corrective phase rather than an impulsive one. The specific wave structure under review is Orange Wave 2, which is part of a larger Navy Blue Wave 3. This suggests that the market is undergoing a correction within a broader upward trend. According to the analysis, Orange Wave 1 has completed, signaling the end of the initial impulsive move within Navy Blue Wave 3. Subsequently, the market has entered Orange Wave 2, which is a corrective phase that typically retraces some of the movement made during Orange Wave 1. The next anticipated direction in this analysis is Orange Wave 3. Once Orange Wave 2 concludes, the market is expected to resume its impulsive movement with the start of Orange Wave 3, continuing the overall trend set by Navy Blue Wave 3. An essential aspect of this analysis is the wave cancellation invalid level, set at 1.06657. This level serves as a critical reference point for traders, as it determines the validity of the current wave count. If the market price moves beyond this level, the existing wave analysis would be invalidated, requiring a reassessment of the market's condition and potential strategic adjustments. This invalidation level is vital for risk management, providing traders with a clear threshold to monitor. Summary: The EURUSD 4-hour chart analysis identifies a counter-trend characterized by Orange Wave 2 within Navy Blue Wave 3. Orange Wave 1 has been completed, and the market is now experiencing Orange Wave 2. The next phase expected is Orange Wave 3, following the completion of Orange Wave 2. The wave cancellation invalid level at 1.06657 is crucial for maintaining the accuracy of the current wave count and for effective risk management.   Technical Analyst : Malik Awais Source : Tradinglounge.com get trial here!  
×
×
  • Create New...
us