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ASX Uptrends and Downtrends Analysis: A Comprehensive Overview
In the wake of last week’s remarkable market performance, ChartWatch Scans has been steadfast in identifying emerging strengths in the ASX, particularly following the correction observed between March and April. My uptrend scan encompasses a wide array of over 2,000 ASX-listed entities, with a focus on stocks exhibiting a minimum daily turnover exceeding $200,000 for the last month.
Today’s Uptrends Scan Insights
This week’s scan has yielded an impressive 102 stocks, indicative of the robust nature of the ASX 200. Notably, long-standing members of the Uptrends List include Lynas Rare Earths (LYC), Qantas (QAN), and Wesfarmers (WES), while newcomers such as the Global X Battery Tech & Lithium ETF (ACDC) and BHP Group (BHP) have recently found their place. Additionally, some stocks have returned to the list after previously being affected by market corrections – a fitting example being ANZ Group (ANZ) and Northern Star Resources (NST).
The criteria for inclusion within the Uptrends Scan encompasses critical technical indicators:
- Strong short-term and developing long-term upward trends.
- Both short and long-term trend ribbons demonstrating demand zones.
- Price action revealing rising peaks and troughs.
- A dominance of demand-oriented candles, characterised by upward movement.
It’s crucial to remember that this analysis does not function as a direct trading signal; rather, individuals are encouraged to monitor for signs of potential supply-side control, which could indicate a shift in trend. Warning signs to watch for include:
- Trend ribbons flattening or reversing.
- Declining peaks and troughs in price.
- An increase in supply-side candles indicating downward pressure.
Key Stocks From the Uptrends Scan List
Among the standout stocks this week showing significant excess demand are:
- Adriatic Metals (ASX: ADT)
- Alkane Resources (ASX: ALK)
- Lynas Rare Earths (ASX: LYC)
(For brevity, only a fraction of the full Uptrends List is detailed below)
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| BetaShares Australia 200 ETF | A200 | $148.98 | +3.5% | +14.2% |
| BHP Group | BHP | $41.96 | +7.3% | +3.0% |
| Lynas Rare Earths | LYC | $14.49 | +49.1% | +137.2% |
Today’s Downtrends Scan Insights
Despite the uptrend enthusiasm, a Downtrends Scan has also been generated, with noteworthy mentions including:
- Australian Clinical Labs (ASX: ACL)
- AGL Energy (ASX: AGL)
- Appen (ASX: APX)
The stocks exhibiting significant excess supply from the Downtrends List presently include:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Australian Clinical Labs | ACL | $2.70 | -4.9% | +3.1% |
| AGL Energy | AGL | $8.71 | -9.0% | -19.4% |
| Boss Energy | BOE | $1.705 | -55.2% | -42.2% |
Conclusion and Guidance
The ChartWatch Daily ASX Scans aim to provide a valuable resource for understanding market trends and improving trading strategies. Despite the market’s current state, vigilance is paramount since trends can evolve rapidly and may not remain static. Always conduct personal research and due diligence in tandem with this analysis, as no recommendations are made.
Feel free to compile your trading strategies using these trends, whether opting for stocks in uptrends or sidelining those in downtrends based on personal investment preferences.
For swift transitions between charts relevant to your stock selections, I encourage utilisation of AI technologies to streamline your analytical processes.
Let’s keep monitoring the ASX diligently, and I hope to continue providing you with clear and actionable technical analysis insights!
