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Happy Birthday to ChartWatch ASX Scans! 🎂🥳
This week marks a year since the inception of ChartWatch ASX Scans, which celebrated its first birthday last Friday. To commemorate this milestone, I reviewed the standout uptrends on Monday and the notable downtrends yesterday, hitting the mark on both! However, it’s essential to remember that no technical analysis system, including trend-following methods, can guarantee success at all times.
As a trend trader, my goal is to identify and pursue the strongest trends. Yet, given that the future is inherently uncertain, I am often unsure of the outcomes of my predictions. Trends do not always continue once identified, even among the strongest of Feature trends.
Today, I want to highlight two stocks where I struggled with my predictions over the past year and explain why their charts tell a compelling story.
1. Washington H Soul Pattinson & Company (ASX: SOL)
My analysis of this stock was notably off the mark, despite recently attempting to rectify my earlier shorts with some long positions. Looking at the SOL chart reveals a chaotic series of abrupt price movements, resembling sharp Vs and As—indicative of a choppy market. Every time I believed a new trend was forming, the price reversed just enough to signal a transition back in the opposite direction.
There’s an adage in trend trading: “In choppy markets, trend trades get cut up!” I experienced this firsthand with SOL over the last year.
2. Lynas Rare Earths (ASX: LYC)
The Lynas chart is another example of market chop, as it oscillated between Feature Uptrend and Feature Downtrend across nine instances in just twelve months. Most of my timing in these analysis was subpar, as evidenced by the chart.
Reflecting on trades, particularly the less successful ones, is crucial for any trader. From my experiences with SOL and LYC, I’ve learned the importance of waiting for strong trends, particularly avoiding premature entries in choppy environments.
Overview of ChartWatch Daily ASX Scans
In this series, I present scan lists derived from my trend-following technical analysis approach, aimed at highlighting the best and worst trends in the Australian Stock Exchange (ASX). You’re welcome to utilise AI tools to convert the following tables into lists for your trading platform, such as TradingView, to streamline your analysis and tracking of trending stocks.
Select investors traditionally prefer stocks in robust uptrends while steering clear from those in downtrends. However, how you leverage these lists is ultimately your choice.
Bear in mind that frequent stocks may appear on these lists as long as they meet my criteria, but no notifications will be provided when trends shift. Thus, it’s vital to conduct your own research.
Uptrends Scan List
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Life360 | 360 | $32.28 | +56.3 | +104.0 |
| Adriatic Metals | ADT | $5.15 | +30.7 | +8.4 |
| Australian Finance Group | AFG | $2.18 | +23.9 | +55.2 |
| Antipodes Global Shares ETF | AGX1 | $6.88 | +5.5 | +12.6 |
| Almonty Industries | AII | $2.80 | +6.1 | +378.6 |
| AMA Group | AMA | $0.096 | +50.0 | +119.1 |
| (Additional stocks are omitted for brevity) |
Downtrends Scan List
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Australian Clinical Labs | ACL | $2.93 | -3.3 | +32.6 |
| Amotiv | AOV | $7.77 | +1.7 | -27.5 |
| Avita Medical | AVH | $1.950 | -35.6 | -26.7 |
| Helloworld Travel | HLO | $1.455 | +1.0 | -37.3 |
| Healius | HLS | $0.885 | -13.6 | -8.0 |
| (Additional stocks are omitted for brevity) |
Through this week’s analysis, it’s clear that evaluating both uptrends and downtrends not only helps refine your trading strategy but also enhances your understanding of market dynamics. Stay vigilant and continue researching, as trends can shift in an instant.
