ASX 200 RISES ABOVE MA5 ON U.S.-CHINA TRADE DEAL
ASX 200 futures are currently trading at 6971-higher by 0.30% as compared to the previous closing. The contract closed in the positive territory in the last trading session also.
In the Cash Markets, the ASX 200 added 0.67% to a record close of 7,041.80 on Thursday. The index today jumped past the 7,000 level for the first time ever. The broad market index advanced today as the Sino-U.S. trade deal optimism increased risk appetite, defusing an 18-month conflict that has hit global growth.
The trade deal will roll back some tariffs and lift Chinese purchases of American goods.
Australia’s financial shares climbed 1.07% to a two-month closing high. Stocks of Commonwealth Bank of Australia rose 0.96% to its highest close since 3rd August 2017.
Mining stocks inched up today, with gains in gold shares counterbalancing declines in iron ore and rare earth miners. Stocks of mining giant BHP Group slipped 0.12% on Thursday.
Stocks of Lynas Corp ended flat today after Beijing agreed to purchase two types of the 17-version metal stable- yttrium and scandium- from Washington as part of the phase 1 trade agreement.
Energy shares dropped 0.1% today due to a decline in Energy sector heavyweight Santos limited, which dropped 1.22%, and Oil Search, which fell 0.8%.
Oil and gas explorer Woodside Petroleum added 0.5% after it reported around a 7% increase in fourth-quarter production and forecast higher output for the current year.
On the economic front, Home Loans (MoM) for November released earlier today came in at 1.8%. Home Loans were above the market expectation of 0.4%.
On the technical front, the RSI is currently at 65.5% and suggests that the market can continue trading sideways. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Buy At 6965 Take Profit At 7010 Stop Loss At 6942