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Today’s ASX Trade Opportunities: An Overview
Today’s trading scene on the Australian Securities Exchange (ASX) has produced an unusually high number of short opportunities, revealed by a staggering 44 entries on the Downtrends Scan List. The feature charts are reflecting a challenging market, with 24 downtrends compared to only 10 uptrends—a scenario not commonly seen when the ASX 200 is positioned a mere 1.5% from its all-time high.
Market Divergence: Miners vs. Financials
This imbalance presents an interesting dichotomy. Although significant mining companies like BHP Group (BHP), Rio Tinto (RIO), Fortescue (FMG), and South32 (S32) appear to be on the brink of 12-month lows, blue-chip stocks such as Commonwealth Bank (CBA), Westpac Banking Corporation (WBC), and Brambles (BXB) are reaching new all-time highs. This juxtaposition effectively illustrates the ongoing disparity between performance segments in the Australian market.
Investors face a strategic choice: either capitalise by leaning into the uptrending stocks while shorting those in decline or adhere to a more traditional “balanced portfolio” strategy that combines both sectors, which may lead to stagnation.
Welcome to ChartWatch: Daily ASX Scans
This report introduces ChartWatch, a daily series aimed at identifying the strongest trends within the ASX through a trend-following technical analysis methodology. The objective is to alert investors to potential uptrends and downtrends, facilitating better investment decisions.
Uptrends Overview
Here are notable uptrends from today’s scan:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Life360 | 360 | $32.51 | +4.8% | +110.6% |
| Adriatic Metals | ADT | $5.44 | +49.5% | +37.4% |
| Australian Finance Group | AFG | $2.23 | +5.2% | +56.5% |
| APA Group | APA | $8.54 | +4.4% | +2.5% |
| Global X Uranium ETF | ATOM | $20.45 | +34.5% | +31.5% |
| Amplia Therapeutics | ATX | $0.235 | +351.9% | +242.5% |
| Brambles | BXB | $23.70 | +7.6% | +64.8% |
| Commonwealth Bank of Australia | CBA | $182.85 | +6.0% | +45.7% |
| Vaneck Australian Banks ETF | MVB | $41.11 | +4.3% | +19.1% |
| Westpac Banking Corp | WBC | $33.59 | +6.6% | +24.5% |
The above uptrends reflect strong demand for stocks that could potentially offer profitable returns.
Downtrends Overview
Conversely, here are the downtrends from today’s scan:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Australian Clinical Labs | ACL | $2.69 | -12.9% | +6.3% |
| Amotiv | AOV | $7.50 | -5.7% | -29.4% |
| ARB Corporation | ARB | $29.95 | -4.0% | -21.8% |
| Accent Group | AX1 | $1.290 | -33.2% | -33.2% |
| BHP Group | BHP | $36.13 | -6.4% | -15.1% |
| Botanix Pharmaceuticals | BOT | $0.285 | -25.0% | 0.0% |
| Collins Foods | CKF | $7.16 | -14.5% | -21.3% |
| CSL | CSL | $238.71 | -2.2% | -17.3% |
| Flight Centre Travel Group | FLT | $12.26 | -9.2% | -37.3% |
| Fortescue | FMG | $14.77 | -8.5% | -35.7% |
Investors may want to approach these stocks with caution, as their recent performance indicates heightened supply.
Key Insights
It’s important for traders and investors to maintain flexibility within their strategies. Many stocks on both lists have previously appeared and will continue to do so as long as they meet specific criteria. Be mindful that this is not a sequential recommendation service; instead, it serves as a tool for recognising trends.
Conclusion
The stark contrast between uptrending blue-chip stocks and downtrending miners presents both challenges and opportunities in the ASX landscape. Whether you decide to engage in trend following or uphold a balanced investment approach, ongoing research and careful analysis will be vital as you navigate these market conditions.
Stay informed and always conduct your due diligence before making investment decisions.
