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Australian Stock Market Trends: ChartWatch Update
In this edition of the ChartWatch Daily ASX Scans, we delve into the latest uptrends and downtrends in the Australian stock market. Despite another gain on the benchmark ASX 200—marking an impressive rally of 882 points, or 12.3%, since its low on April 7—it is puzzling to see fewer stocks listed in the Uptrends section. This raises questions about market breadth during a period of relative positivity.
Insights on Uptrends
While the quantity of stocks in uptrends may be lacking, the quality is noteworthy. Notable trends today revolve around three significant themes:
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Critical Minerals: Stocks like Arafura Rare Earths (ARU) and Australian Strategic Materials (ASM) are on a growth trajectory. This follows expectations surrounding President Trump’s semiconductor policy, which may mandate US manufacturers to secure mineral supplies solely from trusted sources.
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Defence Sector: The Vaneck Global Defence ETF (DFND) and shipbuilder Austal (ASB) feature prominently, likely linked to shifting geopolitical alliances and increased defence spending globally.
- Consumer Discretionary: A curious yet telling trend is the appearance of several consumer discretionary stocks such as Eagers Automotive (APE), Harvey Norman (HVN), and Nick Scali (NCK). There is speculation among investors that the Australian market may soon be flooded with affordable Chinese household goods.
Daily ASX Scans Overview
This section is designed to provide insights through my trend-following technical analysis methodology, identifying the strongest upward and downward trends in the ASX. Investors who favour strong uptrends may choose to pursue these stocks, while those keen on downtrends might look for short-selling opportunities.
Uptrends Scan List
Here is the latest Uptrends list:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Alkane Resources | ALK | $0.780 | +20.9% | +21.9% |
| ALS | ALQ | $16.36 | +5.4% | +23.3% |
| Eagers Automotive | APE | $18.49 | +16.8% | +41.7% |
| Aspen Group | APZ | $3.16 | +19.2% | +84.8% |
| Arafura Rare Earths | ARU | $0.205 | +7.9% | +10.8% |
| Austal | ASB | $5.22 | +28.9% | +127.0% |
| Australian Strategic Materials | ASM | $0.720 | +87.0% | -36.0% |
| Barton Gold | BGD | $0.520 | +73.3% | +100.0% |
| Bluescope Steel | BSL | $22.93 | +1.0% | -0.3% |
| Vaneck Global Defence ETF | DFND | $30.99 | +6.1% | 0% |
| Energy One | EOL | $12.70 | +21.3% | +218.3% |
| Harvey Norman | HVN | $5.17 | +2.0% | +11.9% |
| Imricor Medical Systems | IMR | $1.585 | +2.9% | +196.3% |
| Nick Scali | NCK | $17.31 | +5.8% | +24.0% |
| Praemium | PPS | $0.755 | +9.4% | +55.7% |
| Trigg Minerals | TMG | $0.048 | +50.0% | +500.0% |
| Warriedar Resources | WA8 | $0.087 | +38.1% | +89.1% |
Some highlighted stocks from today’s Uptrends include:
- Eagers Automotive (ASX: APE)
- Aspen Group (ASX: APZ)
- Austal (ASX: ASB)
Downtrends Scan List
Conversely, here is the Downtrends list:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Appen | APX | $0.860 | -21.5% | +32.3% |
| Coronado Global Resources | CRN | $0.220 | -38.0% | -81.2% |
| Cettire | CTT | $0.470 | -45.7% | -84.6% |
| EBR Systems | EBR | $1.215 | -38.3% | +34.5% |
| Firefly Metals | FFM | $0.775 | -26.2% | +6.2% |
| Healthco Healthcare and Wellness REIT | HCW | $0.815 | -11.9% | -32.9% |
| Humm Group | HUM | $0.490 | -9.3% | +5.4% |
| Lifestyle Communities | LIC | $7.17 | -14.6% | -41.8% |
| Lendlease Group | LLC | $5.08 | -16.9% | -22.0% |
| The Star Entertainment Group | SGR | $0.105 | -4.5% | -81.4% |
| Servcorp | SRV | $4.89 | -9.6% | +18.7% |
| Sovereign Metals | SVM | $0.655 | -32.8% | +42.4% |
Conclusion
Utilising the ChartWatch scans effectively requires a proactive approach to research and trend analysis, as these lists are dynamic and ever-changing. For further details on the technical analysis methodology, consider reviewing the ChartWatch Primer. Remember to conduct your own research and make informed investment decisions based on your findings.
