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Market Analysis: ASX Uptrends and Downtrends
In today’s ChartWatch edition, we’ve observed a significant change in the ratios of Uptrends to Downtrends among constituents on the ASX 200. Following the peak on August 25, the market has shown signs of recalibration, as the UP and DOWN trends adjust in alignment with evolving market dynamics.
Change in Trend Ratios
Previously, on August 21, the Uptrends Scan List boasted a remarkable 119 constituents with just 7 in the Downtrends Scan List, amounting to an unprecedented ratio of 17:1. As of today, the numbers have shifted, revealing 34 stocks in the Uptrends List (down from 62 yesterday) and 28 in the Downtrends List (up from 25 yesterday). The current ratio has settled at a rather balanced 1.2:1.
These fluctuations are typical in trend-following methodologies, and they hint at a reversion towards equilibrium in market sentiment. While some investors may view these changes with trepidation, I maintain a level-headed approach. The parallel existence of robust long and short setups not only enables continued participation in the prevailing bull trend but also provides strategic risk hedging.
Introducing the ChartWatch Daily ASX Scans
This series is designed to pinpoint the best-performing trends on the ASX based on my technical analysis framework. Traders aiming to capitalise on strong uptrends and manage risks associated with downtrends will find these lists invaluable.
While some stocks may frequently appear in these lists based on consistent performance metrics, tracking individual trends over time remains essential. As a reminder, notifications for stocks leaving the lists will not be provided; thus, diligence in your research is imperative.
Today’s Uptrends Scan List
| Company | Code | Last Price | 1 Month % | 1 Year % |
|---|---|---|---|---|
| Aura Energy | AEE | $0.220 | +37.5% | +57.1% |
| Ampol | ALD | $30.10 | +10.9% | +0.5% |
| BetaShares Asia Tech Tigers ETF | ASIA | $12.63 | +4.6% | +45.2% |
| Betmakers Technology | BET | $0.175 | +12.9% | +92.3% |
| Bisalloy Steel Group | BIS | $4.97 | +26.8% | +76.5% |
| Beetaloo Energy Australia | BTL | $0.315 | +28.6% | +23.5% |
| Vaneck FTSE China A50 ETF | CETF | $63.79 | +9.3% | +34.2% |
| Clearview Wealth | CVW | $0.560 | +25.8% | 0% |
| Dicker Data | DDR | $9.79 | +11.8% | -3.1% |
| Dateline Resources | DTR | $0.260 | +92.6% | +2958.8% |
Highlighted Stocks
The list today presents stocks exhibiting considerable demand, notably:
- Aura Energy (AEE)
- Ampol (ALD)
- Dateline Resources (DTR)
- Electro Optic Systems (EOS)
These stocks represent significant opportunities as market conditions evolve.
Today’s Downtrends Scan List
| Company | Code | Last Price | 1 Month % | 1 Year % |
|---|---|---|---|---|
| Austin Engineering | ANG | $0.285 | -17.4% | -48.2% |
| ASX | ASX | $62.14 | -11.0% | +1.0% |
| Avita Medical | AVH | $1.340 | -20.5% | -49.4% |
| Accent Group | AX1 | $1.385 | -5.5% | -33.4% |
| Bapcor | BAP | $3.55 | -6.1% | -26.8% |
| Bank of Queensland | BOQ | $7.01 | -7.3% | +11.8% |
| Botanix Pharmaceuticals | BOT | $0.140 | -3.4% | -60.6% |
| Endeavour Group | EDV | $3.73 | -10.3% | -29.8% |
| G8 Education | GEM | $0.840 | -8.2% | -33.1% |
| Peninsula Energy | PEN | $0.330 | -36.5% | -78.3% |
Noteworthy Trends
Stocks that exhibit the most significant supply side dynamics include:
- Austin Engineering (ANG)
- Avita Medical (AVH)
- Sonic Healthcare (SHL)
Recognising these downtrending stocks can be a vital part of your investment strategy, offering opportunities to mitigate risk.
Conclusion
As market conditions continue to shift, understanding these trends can empower investors to make informed decisions. Continuous research and assessment are crucial for navigating the complexities of the ASX market effectively. Remember to stay proactive and keep a keen eye on how trends evolve in a rapidly changing financial landscape.
