Is there still strength in the Hong Kong stock market? Has the US stock market already bottomed out? Logical Investment Market Review 240428

Key points of this article:

𝒪 Can Hong Kong stocks still break through higher?

𝒪 US stocks show signs of having bottomed out

◉ Asian markets—Hang Seng Index V-shaped rebound hits new highs, Nikkei consolidates within clear range

Hang Seng Index futures were very strong this week, rising from 16200 to 17780 almost without any pullback.

Last week, we mentioned looking for long positions around 16160, but we didn't expect such a fierce trend.

At one point, we even considered betting on a large consolidation range at 17200. Fortunately, the pattern we needed for entry didn't appear, which helped us avoid missing this real breakout.

Since the breakout has occurred and the trend has strengthened, we will only go long and not short until the trend changes again.

17190 will be our next target for buying.

Nikkei futures bottomed around 37110 and then encountered resistance at 38450, forming a small range.

Quick-handed members might have even shorted at 38450, a support-turned-resistance level formed in mid-March, and locked in profits.

The trend remains consolidative with no clear bullish or bearish direction. It's not too late to consider going long only after breaking 38450.

◉ US markets—Higher Low formed, but major resistance remains overhead

After the disappointing performance in early to mid-April, US stocks finally saw some buying pressure this week. On Friday, Nasdaq futures formed a Higher Low, and the Russell 2000 index did almost the same.

However, overhead resistance is also very clear, including 18030 for Nasdaq futures, 5197 for S&P futures, and 2053 for Russell.

For individual stocks, many big names will report earnings next week, including AMZN and LLY on April 30, and AAPL and NVO on May 2.

AAPL's current price of $169 is very attractive.

US Treasury bonds have been hovering around $107.4, and they quickly recovered after briefly falling below this level, showing slightly stronger bullish momentum.

◉ EUR/USD—Uptrend constrained by resistance

EUR/USD stabilized around 1.061 and started an uptrend but still couldn't break through the former support-turned-resistance at 1.0727.

With conflicting signals between trend and price levels, doing nothing is the best option.

◉ USD/JPY—Sharp rally

If you're a reader on social media, you're probably tired of seeing our updates about this winning trade.

But since this article will also be posted in other free columns, allow me to brag one more time.

After our breakout buy on April 10, the risk-reward ratio of this trade has exceeded 25x.

Currently, both macro and technical factors suggest USD/JPY still has room to rise, so we will continue holding.

On Monday or Tuesday, we will temporarily release a free review, analysis, and reflection on this trade, so we won't go into too much detail today.

Interested friends, remember to follow our page, like, and share this article with others.

The more people see it, the more motivated we are to update.

◉ Cryptocurrencies—Hovering near range bottom

Cryptocurrencies didn't perform strongly this week, still lingering in the lower-middle part of the range.

For bulls, this is actually a good place to go long, as there are no irrational speculators driving up holding costs.

◉ Gold—Stabilized after sharp drop

Gold plunged on Monday, April 22, but barely held above 2300 before rebounding.

Given the massive selling pressure symbolized by Monday's big bearish candle, we hope gold can retest 2300 to confirm a flattening trend before considering going long.

◉ Crude oil—Volatile swings

After last Friday's sharp drop and subsequent rebound, oil prices steadily rose this week but still couldn't break through the former support-turned-resistance at $85.33.

Unlike gold and USD/JPY, which face no overhead resistance, oil prices are expected to encounter selling pressure near $94 and $120.

Therefore, based on the current chart, I'm more inclined to short at $85.33.