ASX 200 Consolidates During the Wednesday Session

• FOMC meeting, interest rate decision, statement, and press conference because hesitation.

• ASX 200 gives up initial gains on Wednesday.

• Risk appetite will continue to be the main driver of global indices. Traders will be parsing the press conference answers by Jerome Powell late Wednesday to get a sense as to what liquidity will be like from a global perspective.

During the Wednesday session, the ASX 200 had initially tried to rally, but gave back gains to end up which is the 13 basis point victory for the day. That being said, it does make a certain amount of sense that the ASX 200 would be a choppy and confused, as well as hesitant, as the Federal Open Market Committee releases its latest interest rate decision, interest rate statement, and of course has a press conference at the end of the session in the United States. This will of course have large and significant ramifications around the world.

Telstra Group (TLS)

Telstra Group gained 25 basis points during the trading session, as it continues to press against the major resistance barrier. Between the AU$4.00 level in the AU$4.10 level, there has been significant resistance multiple times. That being said, the market is likely to continue to see a lot of noise in this area, but quite frankly the communication services giant is in the midst of recovering for the year, as we are now up 4.13% from New Year’s Day. Ultimately, the market breaking out to the upside could lead to a bigger move as so many traders are aware of the massive resistance above.

Wisetech Global (WTC)

Wisetech Global rallied 43 basis points during the trading session, and what has been an extraordinary year for the information technology giant. Over the last 12 months, we have seen a gain of 94.61%, and in the last month alone, there has been a gain of 41.01%! The earnings call on August 21 showed surprise earnings of 6.73% higher than anticipated, but revenue was down 3.4% from expectations. However, Wisetech has had 3 new products that have grabbed the market’s attention, and therefore momentum continues to be a major factor in this very bullish market.

Santos Ltd (STO)

Santos, the energy giant in Australia, has had a rough month. That being said, the Wednesday session has seen Santos gain 43 basis points. However, it’s worth noting that in the last month, Santos has lost 9.73%. At this point in time, value hunters look like they are jumping into the market in order to take advantage of this dip, but the market seems to see a lot of support near the AU$6.75 level, which is where the market is trying to stabilize. The MACD is currently crossing over in an extraordinarily oversold condition, so technical traders may be interested in this market.

Computershare Ltd (CPU)

Computershare drop 1.24% during the trading session on Wednesday, as the industrial giant continues to slide. It is up 6.28% for the year, but the last month has seen a drop of 4.34% in this stock. That being said, it’s probably worth noting that the market had taken off to the upside after the earnings call, and we are roughly only about 50% retraced of that move. The market has been in an uptrend for quite some time, although it is a very choppy one, but it most certainly seems to be stable from a longer-term standpoint. The stock is also rapidly approaching the 200 Day EMA, an indicator that traders have been watching most of the year.

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