ASX 200 Continues to Look for Higher Levels 

• ASX 200 continues to digest gains after breaking out to the upside  

• Australia will be paying close attention to how New York behaves for Tuesday bias.  

• Momentum continues to be a major factor in stock picking.  

The ASX 200 continues to see plenty of strength, as the market has recently broken out above a major resistance barrier  at the 8400 area. By doing so, the market has entered a new phase of strength, and it is worth noting that volume is also starting to pick up. However, it’s also mentioning that the Monday session was both positive and negative at various points in the day, suggesting that volatility is more likely going to remain an issue along the way.  

CSL Ltd (CSL)  

CSL, the healthcare giant in Australia, has seen a very strong session on Monday, gaining 1.66%, or AU$4.60 per share. The market has recently broken higher after bouncing from a crucial support level in the form of AU$270, and the AU$2.17 dividend and of course will continue to attract attention. That being said, CSL might be thought of as a bit of a proxy as well, as healthcare sector stocks tend to be attractive when people are a bit uncertain with economic growth.  

Transurban Group (TCL)  

Transurban Group rallied 2.44% during the trading session on Monday, as the industrial giant continues to fight its way upstream. The explosive candlestick during the trading session on Monday has the market breaking above the AU$13 level, for the first time in well over a month. The market is focusing on momentum as of late, and TCL could fit that bill. That being said, it is also worth noting that the market has been drifting off for several months, so this could also be considered  a short covering rally. Regardless, there is a sudden interest in this market, so it should be watched closely.  

Aristocrat Leisure Ltd (ALL)  

Aristocrat Leisure gained 0.99% for the session on Monday as ALL continues to be a major outperformer in the ASX 200. The AU$0.42 dividend in a few days also will attract a certain amount of attention, but it is also worth noting that this company has rallied 17% over the last month. For the year, ALL is up 67.54%, making it one of the biggest winners on the Australian exchange.  

With the volume spikes that have been part of its trading over the last couple of weeks, one would have to assume that there is still plenty of attention being paid to this stock, and therefore value hunters will more likely than not be interested in this company on pullbacks as the outperformance has been so stark and obvious.  

James Hardie Industries Plc (JHX)  

James Hardies Industries had a strong session on Monday, gaining 2.62% as the materials giant continued to rally quite significantly. That being said, when looked at from a longer-term standpoint, JHX has been range bound for some time, as the bulk of 2024 has seen the AU$45 level offer support, while the AU$60 level offers massive resistance. As the stock has rallied quite significantly lately, market participants will start to pay close attention to that AU$60 level, and whether or not James Hardie can break above it.  

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