Dow and Nasdaq Near Peaks, Hang Seng Rally Strong

Global markets update: Dow and Nasdaq are near highs, and the Hang Seng rally faces resistance. Key levels analyzed.

The Dow Jones Industrial Average and Nasdaq 100 continue to hover near their all-time highs in global markets. At the same time, the Hang Seng Index maintains momentum, according to a recent analysis.

Dow Jones

The Dow Jones Industrial Average experienced a surge to a record high last Friday, although it struggled to maintain this peak. Monday’s trading session saw further challenges, yet the index remains near its historic high. Analysts suggest a drop below the level observed last Wednesday, standing at 38,335, could potentially lead to a test of the 50-day simple moving average (SMA). Further declines target the previous peak of 37,825, followed by the mid-January low 37,129.

Dow and Nasdaq Near Peaks, Hang Seng Rally Strong

Nasdaq 100

Similarly, the Nasdaq 100 reached a record high on Friday before retracing during Monday’s session. The attempted rally on Monday failed to sustain momentum, prompting concerns of a potential test of last week’s low at 17,314. Analysts warn that a breach of this level could signal a move towards the 50-day SMA, which has remained untested since the rally commenced in late October. However, a close above 18,000 would likely renew bullish sentiment.

Hang Seng

The Hang Seng Index has surged above its 100-day SMA for the first time since mid-November, indicating a solid upward trend. Despite recent gains, the index’s momentum has started to wane, raising the possibility of a bearish reversal signaled by a close below the 100-day SMA and a bearish MACD crossover. Analysts observe a bearish outlook persists until the index surpasses the previous lower high of around 17,120 from late December.

In summary, while the Dow Jones and Nasdaq 100 remain near their peak levels, the Hang Seng Index’s rally faces potential challenges ahead, emphasizing the importance of crucial support and resistance levels in determining future market movements. Investors should closely monitor these indices for further insights into market sentiment and potential trading opportunities.

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