Stock Market Rally. How Far Can It Go?

Stock Market Rally. How Far Can It Go?

2023-11-24 • Updated

Global equities on Wall Street experienced a mixed session following the Thanksgiving holiday, heading for the most significant one-month rally since November 2020. MSCI's global shares index slightly eased but was still on track for an 8.5% monthly gain, fueled by growing investor confidence that U.S. interest rates have peaked. Major U.S. indices, including the Dow Jones, S&P 500, and Nasdaq Composite, showed varied movements. In Europe, the STOXX 600 and FTSEurofirst 300 saw positive gains. The U.S. central bank's recent tightening cycle, raising benchmark borrowing costs, has influenced market sentiments, with expectations of potential rate cuts amid weaker economic data and inflation concerns.

US 100 - W1 Timeframe

US100Weekly-2411.png

US 100 is currently approaching a major supply level that overlaps a strong resistance level on the weekly timeframe. What this means is that there is a likelihood of price reversing from the highlighted zone and sliding towards the 50-period moving average as a support.

Analyst’s Expectations: 

Direction: Bearish

Target: 14602.26

Invalidation: 16705.10

US 500 - D1 Timeframe

US500Daily-2411.png

On the daily timeframe chart, US 500 is currently trading within a supply zone, with a retest at a resistance trendline. Considering that the most-recent market structure has been bearish, I have reason to believe that price will continue in a bearish flush from here onwards.

Analyst’s Expectations: 

Direction: Bearish

Target: 4429.44

Invalidation: 4603.21

APPLE - W1 Timeframe

APPLEWeekly-2411.png

APPLE stock is currently trading at a 3-month high, and is currently trading within a supply zone. There also seems to be a head-and-shoulder pattern being formed at the moment. With these in view, my sentiment is largely bearish, at least until the recent high gets broken.

Analyst’s Expectations: 

Direction: Bearish

Target: 174.78

Invalidation: 198.20

CONCLUSION

The trading of CFDs comes at a risk. To succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

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Nasdaq 100 (US100): Toward 17750
Nasdaq 100 (US100): Toward 17750

Bullish Scenario: Buy between 17515 and 17600 with TP1: 17681; TP2: 17720 intraday, and TP3: 17750 / 18000 in extension. Bearish Scenario in case of breaking the buying zone: Sell below 17500 with TP1: 17469; TP2: 17421, and TP3: 17358 in extension.

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