The U.S. Federal Reserve might be ready to buy an unlimited amount of assets to support the economy amid the COVID-19 crisis.
On Monday, the Fed said it will buy Treasury bonds and mortgage-backed securities "in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy".
On March 15, the central bank said it would buy atleast $700 billion in asset purchases.
"The coronavirus pandemic is causing tremendous hardship across the United States and around the world. Our nation's first priority is to care for those afflicted and to limit the further spread of the virus", the Fed said.
Following the news, the U.S. dollar index, which measures the greenback’s value against a basket of six global currencies, was -0.90% lower in the session. 10-year Treasury yield fell to 0.75%.
The Aroon Indicator for GOVT entered a downward trend on May 03, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 229 similar instances where the Aroon Indicator formed such a pattern. In of the 229 cases the stock moved lower. This puts the odds of a downward move at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
GOVT moved below its 50-day moving average on April 01, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GOVT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
GOVT broke above its upper Bollinger Band on May 02, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where GOVT's RSI Oscillator exited the oversold zone, of 46 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 02, 2024. You may want to consider a long position or call options on GOVT as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GOVT just turned positive on April 29, 2024. Looking at past instances where GOVT's MACD turned positive, the stock continued to rise in of 55 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GOVT advanced for three days, in of 285 cases, the price rose further within the following month. The odds of a continued upward trend are .
Category IntermediateGovernment