Table of Contents
Overview of ASX Market Trends: ChartWatch Daily Update
Introduction
If you’re a regular reader of the ChartWatch ASX Scans, you may have observed the stark contrast between the features of the Uptrends and Downtrends sections. This pattern is intentional, arising from a proprietary technical model that assesses the daily price and volume data of every ASX-listed stock to identify promising long and short candidates. The Uptrends and Downtrends lists are effectively mirror images of each other, reflecting opposite market dynamics driven solely by price movements rather than fundamental factors.
Market Conditions
In the latest analysis, the ratio of securities in the Uptrends to Downtrends has stabilised at 2.5 to 1, a shift towards equilibrium noted following a modest decline in the ASX 200 influenced by several disappointing earnings reports. This presents an excellent opportunity for traders who are able to engage in both long and short positions, providing a wider selection of potential investments.
Emerging Opportunities
Today’s scans have revealed numerous smaller capitalisation mining stocks surfacing again, including African Gold (A1G), Beetaloo Energy Australia (BTL), and Torque Metals (TOR), indicating an active market sector ripe for exploration.
Utilising the Scans
The ChartWatch Daily ASX Scans are designed to highlight stocks in notable uptrends and downtrends based purely on technical analysis. Investors can leverage this information literally and strategically—whether by holding onto uptrend stocks or shorting those in downtrends. Since many stocks frequently return to the lists once they meet the selected criteria, continuity in research is crucial for those tracking market movements.
Uptrends Scan List
The following table highlights key companies from the Uptrends Scan List, detailing their last prices along with monthly and yearly return percentages:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Life360 | 360 | $45.06 | +19.8% | +144.6% |
| African Gold | A1G | $0.325 | +47.7% | +1103.7% |
| Abacus Group | ABG | $1.250 | +6.8% | +15.7% |
| ANZ Group | ANZ | $33.87 | +11.3% | +13.2% |
| Codan | CDA | $28.34 | +37.7% | +120.4% |
… [Additional companies omitted for brevity] …
Key Trends in Today’s Uptrends
Stocks exhibiting exceptionally strong demand include Life360 (ASX: 360), African Gold (ASX: A1G), and Codan (ASX: CDA). These selections suggest a robust uptrend likely driven by increased market confidence.
Downtrends Scan List
Conversely, the Downtrends Scan List identifies those stocks exhibiting the strongest supply pressures:
| Company | Code | Last Price | 1mo % | 1yr % |
|---|---|---|---|---|
| Australian Clinical Labs | ACL | $2.51 | -12.5% | -3.5% |
| Amcor | AMC | $13.33 | -10.4% | -15.6% |
| Avita Medical | AVH | $1.450 | -24.9% | -47.3% |
| Accent Group | AX1 | $1.365 | -8.7% | -39.3% |
| Inghams Group | ING | $2.83 | -18.7% | -28.9% |
… [Additional companies omitted for brevity] …
Identifying Weakness
The stocks on the Downtrends list, which include Australian Clinical Labs (ASX: ACL) and CSL (ASX: CSL), indicate notable sell pressure with multifaceted declines over recent months.
The Importance of Due Diligence
When using the ChartWatch Daily ASX Scans, it is essential to consider that trading conditions are fluid, making it necessary for each trader to conduct their own independent analysis before moving forward. The trends in these lists are not exhaustive, nor are they recommendations. Awareness of stock movements, especially those that exit the lists, requires personal research to identify underlying shifts in performance.
Conclusion
The consolidation in ASX trends signals mixed opportunities, where traders can capitalise on both upward and downward movements within the market. Whether you opt to follow the upward momentum of specific stocks or explore shorting potential downturns, informed decision-making grounded in thorough analysis will provide the best chance of success in a dynamic trading environment.
For investors keen on navigating the ASX landscape, stay vigilant through regular chart assessments and personal research to align your strategy with ongoing market conditions.
