ASX 200 Gives Up Early Gains on Monday

• ASX 200 struggles to hang on to early gains.
• Widespread “give back” by Australian equities during the Monday session.

In early trading on Monday, the ASX 200 began to climb steadily, continuing its movement within the same range it has held for several weeks. The market remains focused on the AU$8500 level—a key psychological threshold that has acted as a significant support and resistance point multiple times.

Despite this upward momentum, the start of the week has been somewhat lacklustre. Global equity markets appear to be losing steam following the strong bullish sentiment seen in some indices late last week. Concerns about global economic growth and ongoing geopolitical tensions continue to weigh on investor sentiment. As a result, the Australian share market is likely to remain sensitive to shifts in global risk appetite.

BHP Group Limited (BHP)

BHP Group slipped just over 2% during Monday’s session, closing at AU$36.75. This move rounds off a 13.89% decline over the past year.

The daily candlestick appeared relatively muted. However, recent trading has seen a noticeable increase in volume, as investors attempted to hold the AU$35.00 level as a key support area.

Looking ahead, BHP may benefit from rising Iron Ore Futures, supported by expectations of stronger demand. That said, the stock gapped higher and rallied sharply on Friday, which suggests the market may have been showing signs of fatigue during Monday’s session.

Woodside Energy Group Limited (WDS)

Woodside Energy Group slipped 38 basis points during Monday’s trading session, despite starting the day on a weaker note. The stock recovered some ground to close at AU$23.63, after hitting an intraday low of AU$23.27.

There remains a large gap to the upside that could attract attention. Recent trading volume has been notably strong, suggesting continued interest in the stock.

It also appears that Woodside Energy has now given back all the gains it made following the sale of its 40% stake in the Louisiana LNG operations.

Northern Star Resources Limited (NST)

Northern Star Resources Limited rose by 1.2% as it bounced from a well-defined support area. Over the past year, NST has climbed 42.69%. However, the past month has seen a sharp pullback, with the stock falling 8.76% amid ongoing volatility.

Citi recently lowered its target price for NST to AU$22.00. This suggests that its analysts do not expect a breakout from the broad trading range that has contained the stock for several months.

Despite the mixed sentiment, trading volume remains relatively steady. The stock’s clear price range may continue to draw attention, particularly from short-term traders seeking defined entry and exit levels.

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