AUS200 - Interest Rate cuts - gives us a positive outcome
Hi guys we would be looking into the AUS200!
Fundamentals& Technicals about it !
The S&P/ASX 200 Index (ASX 200) has demonstrated remarkable resilience and growth, reaching new all-time highs in recent months. As of February 12, 2025, the index closed at a record 8,555.80 points, reflecting strong market confidence and surpassing previous records.
NEWS.COM.AU
Several factors have contributed to this upward trajectory:
Robust Corporate Earnings: Major sectors, particularly financials and materials, have reported strong earnings. The financial sector, comprising about 30% of the index, has been bolstered by impressive half-year results from major banks. For instance, Commonwealth Bank reported a better-than-expected half-year profit of $5.1 billion, leading to a 2.4% increase in its share price to a record high of $165.93.
NEWS.COM.AU
Favorable Monetary Policy: The Reserve Bank of Australia's (RBA) recent decision to cut the cash rate by 25 basis points to 4.1% aims to manage inflation, which has been easing faster than anticipated. This move is expected to stimulate economic activity and enhance corporate profitability, providing a conducive environment for equity markets.
Strength in the Mining Sector: Mining companies have significantly contributed to the index's performance. Major players like BHP Group, Rio Tinto, and Fortescue Metals Group have posted gains, driven by strong commodity prices and global demand. The materials sector, accounting for around 20% of the index, continues to benefit from favorable market conditions.
Technological Advancements: The technology sector has also seen notable growth, with companies like Computershare leading gains. Computershare's shares soared by 15.48% after revising its earnings-per-share guidance upwards, reflecting the positive impact of technological innovation and adoption.
In summary, the ASX 200's recent performance reflects a robust and diversified economy, supported by strong corporate earnings, favorable monetary policy, and sectoral strengths. These factors collectively contribute to a positive outlook for the index in the near to medium term.
Entry: 8,500
Target: 8,620 *above the weak resistance level*
SL: 8,450 *sitting around the strong support level*
We are entering with 100 contracts in this trade!
Fundamentals& Technicals about it !
The S&P/ASX 200 Index (ASX 200) has demonstrated remarkable resilience and growth, reaching new all-time highs in recent months. As of February 12, 2025, the index closed at a record 8,555.80 points, reflecting strong market confidence and surpassing previous records.
NEWS.COM.AU
Several factors have contributed to this upward trajectory:
Robust Corporate Earnings: Major sectors, particularly financials and materials, have reported strong earnings. The financial sector, comprising about 30% of the index, has been bolstered by impressive half-year results from major banks. For instance, Commonwealth Bank reported a better-than-expected half-year profit of $5.1 billion, leading to a 2.4% increase in its share price to a record high of $165.93.
NEWS.COM.AU
Favorable Monetary Policy: The Reserve Bank of Australia's (RBA) recent decision to cut the cash rate by 25 basis points to 4.1% aims to manage inflation, which has been easing faster than anticipated. This move is expected to stimulate economic activity and enhance corporate profitability, providing a conducive environment for equity markets.
Strength in the Mining Sector: Mining companies have significantly contributed to the index's performance. Major players like BHP Group, Rio Tinto, and Fortescue Metals Group have posted gains, driven by strong commodity prices and global demand. The materials sector, accounting for around 20% of the index, continues to benefit from favorable market conditions.
Technological Advancements: The technology sector has also seen notable growth, with companies like Computershare leading gains. Computershare's shares soared by 15.48% after revising its earnings-per-share guidance upwards, reflecting the positive impact of technological innovation and adoption.
In summary, the ASX 200's recent performance reflects a robust and diversified economy, supported by strong corporate earnings, favorable monetary policy, and sectoral strengths. These factors collectively contribute to a positive outlook for the index in the near to medium term.
Entry: 8,500
Target: 8,620 *above the weak resistance level*
SL: 8,450 *sitting around the strong support level*
We are entering with 100 contracts in this trade!
Trade closed: stop reached
SL has been reached.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join my Telegram community for Forex trading insights, real-time news, educational content and friendly support. Let's grow and succeed together! -
t.me/Capital55DG
t.me/Capital55DG
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.