Table of Contents
ChartWatch ASX Daily Review
Overview: A Unique Shift in Market Trends
For the past 14 months, ChartWatch ASX has provided detailed insights into uptrends and downtrends across the ASX. Notably, a rare occurrence has unfolded: CSL Limited (ASX: CSL) transitioned from the Uptrends Scan List to the Downtrends List within just days following an alarming earnings report.
The CSL Rollercoaster
Recently, CSL’s stock had surged, demonstrating clear uptrend indicators, including rising peaks and troughs coupled with bullish candles. This momentum was abruptly disrupted following a stark earnings announcement. Despite showing promise initially, a significant downward shift occurred, marked by a pronounced selling candle that erased both demand trends and critical support levels.
The earnings outcome was dreadful, obliterating prior demand indicators and leaving many investors scrambling. Notably, heavy volumes on that fateful Tuesday suggested a rush of sell-offs, indicating a market shift toward supply-side dominance. Such a dramatic reversal is atypical and highlights a notable risk for investors grappling with the ‘sell the rally’ mentality, which could affect future performance.
Current Uptrends and Downtrends
Uptrends Scan List
Here is a snapshot of today’s uptrends:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| African Gold | A1G | $0.310 | +55.0% | +1007.1% |
| The A2 Milk Company | A2M | $8.66 | +11.6% | +28.9% |
| Eagers Automotive | APE | $21.55 | +14.1% | +106.6% |
| ARB Corporation | ARB | $39.49 | +16.2% | -2.0% |
| Hub24 | HUB | $109.58 | +5.7% | +121.9% |
| Lynas Rare Earths | LYC | $15.09 | +49.0% | +144.6% |
| JB HI-FI | JBH | $118.65 | +12.0% | +57.9% |
These stocks exemplify demand strength, with many achieving considerable gains over both one month and one year periods.
Downtrends Scan List
Conversely, the Downtrends Scan List features stocks suffering significant losses:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| AGL Energy | AGL | $8.67 | -11.0% | -25.1% |
| Amcor | AMC | $13.06 | -10.4% | -19.1% |
| CSL | CSL | $225.50 | -11.7% | -25.1% |
| Boss Energy | BOE | $1.690 | -55.9% | -41.7% |
| Polynovo | PNV | $1.125 | -8.5% | -55.4% |
These figures indicate a clear supply-side trend, with CSL notable amongst them, reflecting the recent drastic changes it faced.
Featured Insights and Considerations
Today’s analysis highlights the pressing volatility within the ASX environment. Stocks like CSL, once at the forefront, have illustrated how rapidly market perceptions can shift based on earnings and investor sentiment. Conversely, companies such as African Gold and Eagers Automotive show resilience and potential in their respective sectors.
As always, investors are advised to remain cautious and conduct thorough research, particularly when trends change as dramatically as seen with CSL. Regular monitoring and adjustment of strategies are crucial in navigating these ever-shifting market dynamics.
Conclusion
Welcome to the latest edition of ChartWatch ASX Daily Scans, where we provide a dynamic look at market movements. The insights gleaned today can help navigate trading strategies while highlighting potential opportunities across both uptrend and downtrend scans. As trends evolve, staying informed will empower traders to make educated decisions tailored to their investment strategies.
Note: Market conditions can fluctuate rapidly; ensure to apply personal analysis and due diligence when interpreting these trends and data.
