US Stocks prices are trading near their all-time highs in the wake of the Federal Reserve’s decision to cut interest rates. Stocks have recently paused and are waiting to see if the Fed would provide the impetus to push large cap tech stocks to fresh all-time highs. Market participants widely expected the reduction in the overnight borrowing rate, and commentary made several believe that additional cuts during the balance of 2019 were less likely. The Fed cut the Fed Fund rate by 25-basis points to a range between 1.75%-2.0%. Of the total 12-members, 7 see room for another cut in 2019, and 5-see rates unchanged.
The technical outlook for some major shares is mixed. Apple continues to push toward its all-time highs. Microsoft is also following an uptrend. Amazon, on the other hand, is forming a topping pattern as momentum is slowing.
Apple shares are rising in September and poised to test all-time highs. Shares are experiencing upside momentum. The month moving average convergence divergence index (MACD) generated a crossover buy signal. This occurs as the MACD line (the 12-month moving average minus the 26-month moving average) crosses above the MACD signal line (the 9-month moving average of the MACD line). The monthly MACD histogram is printing in the black with an upward sloping trajectory which points to higher prices for Apple shares. Shorter term momentum is also on the rise as the fast stochastic accelerates higher. The current reading on the monthly fast stochastic is 79, just below the overbought trigger level of 80. You can trade stocks like Apple on iFOREX.
Consumer sentiment is buoyed by the trade war between the US and China are weighing on sentiment. Amazon shares remain at the upper end of the recent trading range but appear to be forming a topping pattern. The stock price will need to break out to all-time highs to revive momentum. Support on Amazon shares are seen near the 10-month moving average at 1,769. Resistance is seen near the all-time highs at 2,050. Short-term momentum on Amazon shares has turned negative as the monthly fast stochastic generated a crossover sell signal. Medium term momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.
Microsoft shares hit fresh intra-month all-time highs in July and are bucking up against those levels near 141. Support on the technology giant is seen near the 10-month moving average at 123.7. Short-term momentum is positive to neutral as the shares grind higher. The fast stochastic recently generated a crossover buy signal. The current reading on the fast stochastic is 91, which is well above the overbought trigger level of 80 which could foreshadow a correction in the shares. Medium term momentum is positive but is turning neutral. The MACD (moving average convergence divergence) histogram is printing in the black with a flattening trajectory which points to consolidation.