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Overview of the Week’s Trading Activity
The Australian Stock Exchange (ASX) had its best week since December 2023, marking a significant performance milestone not seen in over a decade. As we enter this trading week, a robust Uptrend Scan List reflects a strong incline across multiple sectors, featuring companies of varying sizes from small to large.
Commonwealth Bank of Australia (CBA) continues its stellar performance, recording its 51st feature in the Uptrend Scans since the program’s inception in May 2022. This impressive consistency places CBA at the forefront of premium uptrends, averaging a spot on the list weekly. The only competitor in this regard is Coronado Global Resources (CRN), which, despite featuring frequently, has succumbed to a dubious record of 54 downtrends.
The principle of trend following—staying aligned with market momentum regardless of broker ratings—underscores this analysis. While CBA faced continuous SELL ratings from major brokers over the last year, CRN often enjoyed BUY ratings, highlighting how independent market analysis can occasionally diverge from traditional metrics.
ChartWatch Daily ASX Scans Introduction
In this ChartWatch Daily ASX Scans series, we aim to pinpoint the most prominent uptrends and downtrends on the ASX based on technical analysis. Investors can leverage this insight to make informed trading decisions, whether they opt to invest in rising stocks or steer clear of sinking ones.
It’s crucial to note that several stocks may repeat on these lists as they consistently meet selection criteria. However, changes in trends do not generate alerts, so diligent research to ascertain trend shifts remains essential.
Today’s Uptrend Scan List
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| The A2 Milk Company | A2M | $8.47 | +6.8% | +38.9% |
| Aussie Broadband | ABB | $4.19 | +5.0% | +13.7% |
| Australian Finance Group | AFG | $1.865 | +16.9% | +24.3% |
| Aristocrat Leisure | ALL | $67.66 | +5.5% | +69.5% |
| ALS | ALQ | $17.28 | +12.1% | +31.8% |
| Eagers Automotive | APE | $19.10 | +27.4% | +51.1% |
| Abacus Storage King | ASK | $1.510 | +28.5% | +33.6% |
| Commonwealth Bank of Australia | CBA | $169.66 | +12.4% | +48.1% |
| Coles Group | COL | $21.93 | +12.3% | +35.2% |
| Superloop | SLC | $2.59 | +22.7% | +93.3% |
Notable Uptrend Stocks
Among today’s featured stocks showing significant excess demand include Aussie Broadband (ABB) and Eagers Automotive (APE), with notable performance from banks like Commonwealth Bank of Australia (CBA) and the Bank of Queensland (BOQ).
Today’s Downtrend Scan List
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Amcor | AMC | $14.23 | -7.2% | +3.0% |
| Coronado Global Resources | CRN | $0.175 | -47.0% | -85.9% |
| Skycity Entertainment Group | SKC | $1.040 | -9.2% | -35.2% |
Key Downtrend Stocks
The most pressing downtrends presently are Coronado Global Resources (CRN), which has faced significant downward movement over the past year, and Skycity Entertainment Group (SKC), indicating ongoing supply pressures.
Conclusion
The ChartWatch methodology represents a valuable approach for investors seeking to navigate the ASX through technical analysis. However, it emphasises individual due diligence, focusing on changing trends without proactive notification. As market dynamics shift, adapting strategies based on consistent analysis will be crucial for success in the upcoming trading landscape.
For further reading on technical analysis techniques, consult the detailed ChartWatch Primer, which offers a comprehensive insight into the methodologies utilised here. Always remember, the market’s future is uncertain, and rigorous research is essential in your investment journey.
