ASX 200 Bounces After a Nasty Selloff

• ASX 200 saw an early sell-off but managed to bounce later in the session.
• American indices are attempting a recovery by midday on Monday.
• Risk appetite remains a significant concern.

During Monday’s trading session, global markets saw heightened volatility and the ASX was no exception. The $7,800 level provided key support, possibly signalling short-term exhaustion in selling. After weeks of declines across both Australian and US markets, traders may be taking a breather, but uncertainty remains high.

The key question now is whether stability will return or if volatility will persist. More likely than not, markets will remain turbulent. Traders continue to find themselves in a situation where they need to be cautious with position sizing as the world awaits further details on the upcoming “Liberation Day” in the US, marketed by Donald Trump’s tariff announcements.

Woolworths Group Limited (WOW)

Woolworths Group saw choppy trading on Monday, hovering around the 50-day EMA. Like the broader market, WOW remains at the mercy of shifting sentiment. The AU$0.39 dividend might appeal to cautious investors, although the recent global market sell-off has affected most stocks without much distinction. Just above, the AU$30 level holds psychological significance, with traders eyeing the strong bullish candlestick from a few days ago.

CSL Limited (CSL)

CSL fell 1.36% on Monday, breaking below the key AU$250 level. Down 13.42% over the past year, the healthcare giant continues to struggle despite its AU$2.071 dividend. With ongoing selling pressure on equities, that yield may not be enough to entice buyers. After a weak earnings call, focus is now on the AU$245 support level, which has acted as a rebound point in the past. A breakdown below this zone could signal further downside, as technical indicators remain bearish.

Goodman Group (GMG)

Goodman Group dropped nearly 3% during Monday’s session, extending its 16% decline over the past year. With global risk appetite waning, real estate is particularly vulnerable in this “risk-off” environment, and it’s no surprise that Goodman Group is under pressure. The charts remain bleak and while there may be potential value, traders will likely wait for signs of stability before considering long positions.

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