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ChartWatch Daily ASX Scans: Navigating Uptrends and Downtrends
The latest edition of ChartWatch delves into the Australian Securities Exchange (ASX) with a robust compilation of potential long and short stock positions. This report highlights significant uptrends and downtrends, presenting investors with ample opportunities amidst market fluctuations.
Market Overview: A Mixed Bag
The current market sentiment is showing promising uptrends in sectors such as Gold, Banking, Insurance, and Consumer Discretionary. However, resource stocks, particularly those focused on iron ore, are showing pronounced downtrends, with BHP Group (ASX: BHP), Champion Iron (ASX: CIA), Fortescue (ASX: FMG), and Mineral Resources (ASX: MIN) among the most affected.
The intention of this ChartWatch series is to provide a snapshot of the ASX trends, guided by a trend-following technical analysis methodology. Investors are encouraged to utilise these lists to identify potential trades on platforms like TradingView. While many stocks recur in these lists, it’s essential to monitor changes actively, as their trends can shift unexpectedly.
Uptrends Scan List
The following stocks have demonstrated persistent upward momentum, as shown in the Uptrends Scan List:
| Company | Code | Last Price | 1 Month % | 1 Year % |
|---|---|---|---|---|
| Australian Ethical Investment | AEF | $6.10 | +18.2% | +34.1% |
| Almonty Industries | AII | $3.25 | +22.2% | +441.7% |
| Bank of Queensland | BOQ | $8.00 | +7.5% | +39.1% |
| Commonwealth Bank of Australia | CBA | $178.64 | +7.0% | +51.4% |
| JB HI-FI | JBH | $109.98 | +6.0% | +94.3% |
| Telstra Group | TLS | $4.87 | +7.5% | +41.6% |
| Ventia Services Group | VNT | $4.81 | +10.8% | +37.0% |
Note: The above table lists just a selection of companies; for a complete rundown, refer to the original report.
Highlighted Uptrends
Among the featured stocks from the Uptrends List are:
- Almonty Industries (AII)
- Bendigo and Adelaide Bank (BEN)
- Commonwealth Bank of Australia (CBA)
These stocks display strong demand, showcasing their potential for continued growth.
Downtrends Scan List
In contrast, the Downtrends Scan List captures stocks that are currently facing downward pressure:
| Company | Code | Last Price | 1 Month % | 1 Year % |
|---|---|---|---|---|
| BHP Group | BHP | $37.56 | -0.5% | -15.2% |
| Champion Iron | CIA | $4.17 | -8.8% | -39.9% |
| Fortescue | FMG | $15.02 | -5.9% | -39.4% |
| IDP Education | IEL | $3.88 | -59.2% | -76.1% |
| Mineral Resources | MIN | $18.50 | -10.8% | -74.1% |
Stocks Showing Strong Supply
Highlighted in the Downtrends list are several companies demonstrating excess supply, including:
- BHP Group (ASX: BHP)
- Champion Iron (ASX: CIA)
- Fortescue (ASX: FMG)
Key Takeaways
- Market Dynamics: Fluctuating trends suggest a mixed market landscape, with investors needing to remain alert.
- Trend Monitoring: The absence of alerts for stocks leaving the lists means that diligent research is crucial to stay informed about changes in trends.
- Investment Strategy: Each investor must determine how to utilise the lists according to their personal trading strategies, whether aiming for long positions in uptrends or shorting downtrends.
Conclusion
The ChartWatch Daily ASX Scans offer valuable insights into market trends, equipping investors with the knowledge to navigate the complexity of the Australian equity market. By actively monitoring these trends and leveraging technical analysis, investors can position themselves effectively in an ever-evolving landscape. Always remember that market conditions can shift unpredictably, making vigilance and ongoing research paramount.
