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ASX Uptrends: Resources Sector on the Rise
As the Resources sector transitions from a prolonged downtrend to an upward trend, numerous stocks within this category are also beginning to show positive momentum. This week’s Uptrends Scan List is predominantly filled with stocks related to lithium, battery metals, and rare earth elements, indicating a significant turnaround.
Notable Entrants and Performance Insights:
Among the highlights, we see the first-ever inclusion of lithium stocks such as Pilbara Minerals (PLS) and Argosy Minerals (AGY). Both have joined the Global X Battery Tech & Lithium ETF (ACDC), which appeared on the list just last week. Pilbara Minerals has notably broken free from its previous streak of 40 listings on the Downtrends Scan List since June 2024.
Major players in the resource sector have also made it to the Uptrends Scan List, including BHP Group (BHP), Fortescue (FMG), and Mineral Resources (MIN). Additionally, companies like Lynas Rare Earths (LYC) and Deterra Royalties (DRR) mark their presence as key assets, while the energy sector shows resurgence with contributions from Woodside Energy (WDS) and Whitehaven Coal (WHC).
The ASX 200 benefits greatly from these resources and energy leaders, with banking stocks like ANZ Group (ANZ) and Westpac Banking Corp (WBC) complementing the composition. However, the notable absence of several major financial stocks from the Uptrends Scan Lists hints at a potential sector rotation.
ChartWatch Daily ASX Scans
In this edition of the ChartWatch Daily ASX Scans, I will provide an overview based on trend-following technical analysis methodology aimed at highlighting significant uptrends and downtrends within the ASX.
Investors can utilise the lists provided to focus on strong uptrending stocks while considering strategies like avoiding or short-selling poor performers. However, it’s crucial to perform personal research to track changes in trends over time.
Uptrends Scan List Overview
Here are some standout companies from the Uptrends Scan List:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| 4DMEDICAL | 4DX | $0.480 | +104.3% | +6.7% |
| African Gold | A1G | $0.250 | +16.3% | +900.0% |
| Global X Battery Tech & Lithium ETF | ACDC | $103.40 | +10.9% | +35.5% |
| Argosy Minerals | AGY | $0.037 | +37.0% | -2.6% |
| BHP Group | BHP | $40.87 | +3.8% | -0.4% |
| Lynas Rare Earths | LYC | $12.96 | +34.0% | +117.8% |
| Mineral Resources | MIN | $38.12 | +38.7% | -26.8% |
| Woodside Energy Group | WDS | $27.02 | +12.7% | +6.4% |
These stocks exhibit significant investor interest, reflecting robust demand in the market.
Noteworthy Uptrend Stocks
Amongst the key uptrend setups are:
- 4DMEDICAL (ASX: 4DX) – Marked for impressive monthly gains.
- African Gold (ASX: A1G) – A standout performer with a notable annual increase.
- Breville Group (ASX: BRG) and Fortescue (ASX: FMG) also present attractive charts indicating strong bullish momentum.
Downtrends Scan List Overview
Conversely, the following companies are listed as part of the Downtrends Scan List:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Accent Group | AX1 | $1.490 | -1.3% | -29.0% |
| Domino’s Pizza Enterprises | DMP | $18.68 | +2.4% | -38.8% |
| The Star Entertainment Group | SGR | $0.089 | -28.8% | -81.3% |
| Treasury Wine Estates | TWE | $7.61 | -5.1% | -35.3% |
Stocks like Findi (ASX: FND) and Fleetpartners Group (ASX: FPR) exhibit significant excess supply, indicating a continued downward trend.
Conclusion and Considerations
While the upward trajectory for the Resources sector seems promising, investors should remain cautious. Market conditions can shift rapidly, and trends may not hold persistently. The lists curated here are not exhaustive, and diligence in personal research is paramount to navigate changing market dynamics effectively.
Always remember: the future remains unpredictable in the world of stocks, and trends can reverse without warning.
