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Insights from ChartWatch Daily ASX Scans: Trends in Uptrends and Downtrends
In the dynamic realm of stock trading, ChartWatch Daily ASX Scans provides a critical lens on market behaviour, particularly in identifying both upward and downward price trends. Each trading day, a focus on finding promising stocks poised for price increases is essential. Yet, as many seasoned investors will agree, ignoring stocks experiencing declines means missing out on significant opportunities and diverse trading strategies.
The Reality of Market Fluctuations
Equity prices undeniably fluctuate — they both ascend and descend. Notably, when declines occur, they often happen at a swifter pace compared to upward movements. Recent case studies include notable drops in prominent companies like James Hardie (JHX) and CSL (CSL), highlights which underscore the importance of monitoring downtrends.
Today’s charting analysis dives into both uptrends and downtrends. Recognising prevailing downtrends can yield profitable short selling opportunities. Among today’s downtrend highlights is ASX Group (ASX), prominently featured as a significant contributor to the downward trend in the ASX.
Opportunity Abounds in Declining Markets
For investors inclined towards tactics like short selling, today’s Downtrends Scan List offers a buffet of opportunities. Many of these companies have been part of the list for an extended period, continuously exhibiting supply dominance, indicating potential for further decline.
In today’s selection of stocks, ChartWatch Daily ASX Scans identifies 72 uptrending stocks and 25 downtrending stocks, refined to 27 Feature Uptrends and 18 Feature Downtrends. This blend of data helps investors tailor their strategies effectively.
Methodology and Approach
The methodology underlying ChartWatch involves technical analysis focused on trend-following principles. The intent is to present the current best opportunities on the ASX, both upward and downward.
Investors could leverage AI tools to arrange the stocks listed below into formats compatible with trading platforms such as TradingView. This allows seamless transitions from one stock’s chart to another, enabling quick identification of uptrends and downtrends.
Uptrends Scan List Highlights
The table below details a selection of stocks across various sectors demonstrating significant growth potential, including price changes over the past month and year:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| A2 Milk Company | A2M | $9.17 | +14.5% | +55.4% |
| Australian Finance Group | AFG | $2.54 | +17.6% | +69.3% |
| Codan | CDA | $30.60 | +47.9% | +112.5% |
| Coles Group | COL | $22.50 | +10.6% | +22.0% |
| Catalyst Metals | CYL | $7.45 | +57.5% | +282.1% |
| Zip Co. | ZIP | $4.12 | +29.6% | +90.7% |
Downtrends Scan List Highlights
Conversely, the following table shows stocks that are currently experiencing declines, indicated by their price changes:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Amcor | AMC | $13.04 | -12.5% | -19.4% |
| Appen | APX | $0.880 | -24.1% | -23.8% |
| Reece | REH | $10.89 | -20.0% | -58.1% |
| Inghams Group | ING | $2.75 | -20.5% | -28.9% |
| Endeavour Group | EDV | $4.03 | -1.9% | -26.3% |
Noteworthy Insights
The charts from today’s featured stocks underscore patterns of significant demand or supply. Notable stocks exhibiting excess demand from the Uptrends List include A2 Milk Company (ASX: A2M) and Coles Group (ASX: COL), while Amcor (ASX: AMC) and Endeavour Group (ASX: EDV) are among those showing increased supply in the Downtrends List.
Conclusion
ChartWatch serves not just as a guide but a tool for investors aiming to navigate the complexities of the ASX. While the focus on uptrends remains critical, understanding and utilising downtrends opens a pathway for diversified investment strategies. As always, thorough research remains essential; sudden market changes can disrupt established trends at any moment. Follow this approach for insightful trading opportunities across both ascending and descending markets.
