Fed is Ready to Buy Unlimited Assets
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%.
GOVT in upward trend: 10-day moving average moved above 50-day moving average on June 17, 2025
The 10-day moving average for GOVT crossed bullishly above the 50-day moving average on June 17, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 27, 2025. You may want to consider a long position or call options on GOVT as a result. In of 91 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 May 29, 2025. Looking at past instances where GOVT's MACD turned positive, the stock continued to rise in of 59 cases over the following month. The odds of a continued upward trend are .
GOVT moved above its 50-day moving average on June 17, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GOVT advanced for three days, in of 281 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where GOVT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for GOVT entered a downward trend on June 03, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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Category IntermediateGovernment
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