ASX ChartWatch: Insights on A2 Milk Co, BHP, JB Hi-Fi, Lynas Rare Earths, Qantas Airways, Telstra, Wesfarmers, and Woolworths

ASX Market Update: Record Highs and Promising Stocks

It seems the Australian stock market has picked up momentum once again, as the ASX 200 soared to an unprecedented close above 9,000 on Thursday. This significant achievement marks a historic peak in the index, reflecting an overpowering positive trend among Australian stocks.

Recent scans of the market reveal a milestone in trend following: the ChartWatch Uptrends Scan List now boasts an astonishing 119 stocks in uptrends, contrasted sharply by just 7 stocks in downtrends. This represents a remarkable ratio of 17:1 in favour of bullish trends, signalling robust market optimism. Previous records consisted of 102 stocks in uptrends, yielding a lesser ratio of 13:1.

This environment is particularly lucrative for trend followers, but it also raises caution. While many stocks benefit from the overall market uptick, some may not reflect genuine value movements. Consequently, it’s vital to differentiate between stocks merely riding the uptrend wave and true performers.

The efficacy of the selection process relies on a meticulous algorithm that filters an array of approximately 2,200 ASX stocks down to a shortlist of 119, which requires further personal scrutiny to identify the Feature Uptrends List. Today, this refined list includes 48 stocks, representing the cream of the crop amidst the existing market pulse.

Today’s Noteworthy Stocks

Here’s a closer examination of some of the standout performers:

1. BetaShares Australia 200 ETF (A200) – Last Price: $150.76

   • 1 Month Change: +3.5%
   • 1 Year Change: +13.2%

2. The A2 Milk Company (A2M) – Last Price: $8.82

   • 1 Month Change: +13.5%
   • 1 Year Change: +54.7%
3. Adriatic Metals (ADT) – Last Price: $6.34
   • 1 Month Change: +6.9%
   • 1 Year Change: +142.0%

These stocks have demonstrated robust demand, reinforcing their potential for further growth.

Downtrends to Watch

Conversely, the Downtrends List highlights stocks under repressive market conditions. Here are a few that have caught attention:

1. Australian Clinical Labs (ACL) – Last Price: $2.52

   • 1 Month Change: -10.6%
   • 1 Year Change: -1.9%

2. AGL Energy (AGL) – Last Price: $8.54

   • 1 Month Change: -13.4%
   • 1 Year Change: -28.7%
3. Healius (HLS) – Last Price: $0.700
   • 1 Month Change: -12.5%
   • 1 Year Change: -34.9%

These stocks are ideal candidates for those who prefer to sidestep underperformers or consider short-selling opportunities.

Conclusion

The current landscape of the ASX presents an unusual scenario of soaring heights for many stocks. However, discerning investors must remain vigilant amidst this market exuberance. Selecting stocks requires rigorous analysis to separate fleeting trends from steadfast growth potential.

Being part of the ChartWatch journey entails leveraging technical analysis to refine your investment strategies. Remember, continuous research and market awareness are crucial in a fluctuating environment.

Stay informed, and happy trading!

Note: Today’s data is subject to market volatility, and all information is to be used as a reference guide. Always conduct further research before making investment decisions.