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ASX 200 Trends: Uptrends vs Downtrends
The interplay between the ASX 200 index and the Uptrends and Downtrends Scan Lists is a captivating sight for investors. Over the past few weeks, as the ASX 200 has steadily climbed, the Uptrends Scan List has ballooned, peaking at 102, while the Downtrends list shrank to as few as eight companies, creating a striking disparity on August 18. This significant imbalance raises important considerations, especially if the ASX 200 were to face challenges ahead, at which point these trends could reverse rapidly.
This report highlights the beauty of a trend-following model, which mirrors market conditions and mitigates the impact of possible downturns. Generally, as a decline occurs, the portfolio adjusts naturally through a reduction in long positions and a rise in short opportunities.
Current Trends Snapshot
As of the latest update, the current statistics are as follows:
- Uptrends Scan List: 56
- Downtrends Scan List: 27
While long setups continue to dominate, the reduction from the previous peak indicates a necessary caution. Tracking these metrics daily could provide further insights into market dynamics.
ChartWatch Daily ASX Scans
ChartWatch Daily aims to present curated scan lists rooted in technical analysis, identifying the most promising uptrends and downtrends in the ASX. Investors are encouraged to utilise these lists flexibly, choosing to invest in strong uptrends or short-sell downtrends based on their strategy.
Importantly, many stocks recur on these lists, reflecting ongoing compliance with the established analysis criteria. However, when stocks are removed, no alerts are provided; hence, individual research on trend changes remains crucial.
Uptrends Scan List Highlights
A selection from the Uptrends Scan List is presented below. This list showcases companies currently experiencing substantial momentum:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Australian Finance Group | AFG | $2.39 | +12.2% | +53.2% |
| ALS | ALQ | $18.90 | +5.6% | +23.8% |
| Eagers Automotive | APE | $21.97 | +17.7% | +106.9% |
| Cobram Estate Olives | CBO | $2.86 | +17.2% | +78.8% |
| JB HI-FI | JBH | $120.00 | +14.9% | +58.0% |
| Westpac Banking Corporation | WBC | $38.23 | +17.1% | +28.9% |
These companies are indicative of sectors that are tracking positively within the Australian market.
Downtrends Scan List Highlights
Conversely, the current Downtrends Scan List indicates stocks under pressure:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| AGL Energy | AGL | $8.66 | -12.4% | -26.4% |
| Boss Energy | BOE | $1.595 | -59.0% | -47.9% |
| Appen | APX | $0.850 | -25.8% | -6.1% |
| Avita Medical | AVH | $1.490 | -11.3% | -46.8% |
| GQG Partners | GQG | $1.745 | -21.4% | -37.0% |
This list signals areas where investor alertness to potential downgrades is critical.
Current Observations
Among the standout performers from the Uptrends list are Australian Finance Group and Eagers Automotive, which demonstrate strong demand trends. In contrast, significant downtrends are led by firms like Boss Energy, which has seen a sharp decline over the month.
Key Considerations
Engaging with the ChartWatch Daily ASX Scans involves awareness that market trends can pivot quickly. Hence, while these curated lists provide valuable insights, they should not serve as definitive recommendations. Each investor should engage with their own due diligence and market analysis.
Investors should remain informed and utilise this data to better navigate the complexities of the ASX landscape. The trends may shift, but maintaining a proactive approach and utilising these resources is essential for optimising investment choices.
