ASX 200 Continues to Rally

• US markets will likely lead the way going forward as the Fed meets.
• The ASX 200 continues to pressure the upside.
• Tariffs are still in focus.

The ASX 200 surged during Wednesday’s trading session, as the index appears to be making a concerted effort to challenge the critical 8,500 level. However, market conditions are expected to remain volatile, given the impending Federal Reserve interest rate announcement later in the day. As a result, any immediate price action should be interpreted with caution. Despite potential short-term fluctuations, the broader market trend remains bullish. Investors continue to seek value opportunities, viewing the ASX 200 in line with other global indices that have shown a propensity for further gains. On the downside, the 8,350 level appears to be a key area of support, providing a potential floor for any pullbacks.

Source: TradingView, ASX Chart, 30 January 2025 

Rio Tinto (RIO)

Rio Tinto declined 1.23% Wednesday, as ongoing concerns continue to weigh on the materials giant. While the past month saw only a modest decline of 0.51%, over the past year, it has fallen by more than 12%. Key factors to monitor include the company’s drilling project in Rwanda and potential US tariffs on commodity producers. Overall, the market appears to be attempting to establish a bottom, but with the next earnings call scheduled for 19 February, it may remain in a “holding pattern” near term.

Source: TradingView, RIO Chart, 30 January 2025 

QBE Insurance Group (QBE)

QBE had a solid performance on Wednesday, rising 74c as the insurance giant continues to rally. The stock has gained just over 5% in the past month and nearly 33% over the last year. Having recently reached a new all-time high, the market appears to have strong momentum. Buyers seem willing to step in on pullbacks, with the 50-Day EMA providing support just below the AU$19.50 level. With the next earnings call set for 21 February, there are limited fundamental disruptions expected in the near term, allowing QBE to maintain its upward trajectory following a strong few months.

 Source: TradingView, QBE Chart, 30 January 2025 

Coles Group (COL)

Coles Group dropped 21c during the trading session, as the consumer staples giant continues to trade around the AU$19.35 level. The stock appears to be approaching a potential breakout, with this price region forming a minor “double-top” pattern. While recent price action has been somewhat choppy, the company remains a key player in the consumer staples sector. Overall, the trend remains bullish, with the stock making repeated attempts to surpass AU$20. Buyers seem willing to step in and take advantage of any dips, particularly following an earnings report that slightly exceeded expectations, despite a minor revenue shortfall.

Source: TradingView, COL Chart, 30 January 2025 

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