ASX 200 Gives Up Early Gains on Wednesday

• ASX 200 initially rallied but gave back much of the gains on Wednesday.
• Healthcare leads the way in otherwise quiet trading.
• China remains in focus for most material stocks, as traders look for safety in other companies.

During the Wednesday trading session, we saw the ASX 200 rally toward the 8350 level, but then give back most of the gains to form a less than impressive candlestick. That being said, the previous session was rather bullish and did take out the top of a couple of inverted hammers, so this shows us at least that the ASX 200 is doing everything it can to turn things around.

Technical traders have been watching this area, because it features the 50 Day EMA, but also has the uptrend line sitting just below that we had launched from. Volume has picked up, and certainly it looks like traders around the world are trying to bet on some type of economic activity due to the possibility of increased central bank easing of interest rates in multiple countries.

CSL Ltd (CSL)

CSL had a strong trading session on Wednesday, as it gained 1.19%, to close out the AU$282.24 level. The healthcare giant has now turned around to be positive for the year, at 41c. CSL is reaching toward the 50 Day EMA, and it will more likely than not be a bit of resistance near the AU$285 level. It’s worth noting that volume has been relatively steady, and CSL might have been away traders are playing to get away from riskier bets, as healthcare is considered to be defensive. While the ASX 200 itself was positive for the day, it closed poorly.

Pro Medicus Ltd (PME)

Pro Medicus rallied a strong 2.25% for the trading session, as the healthcare giant served as a heavy lifter for the ASX 200. Over the last year, PME is up 181.64%, as this stock continues to rally. PME was upgraded to an overweight rating by Morgan Stanley, as the imaging tech provider continues to be looked at through the process of being scalable, and analysts believe that PME customer volumes will grow roughly 7% annually over the next 5 years. It’s also worth noting that the stock is getting very close to the recent all-time highs again.

Coles Group Ltd (COL)

Coles Group dropped 0.75% for the trading session to close at AU$18.66. That being said, Coles is up 17.14% as the consumer Staples leader continues to perform well for the year. It is worth noting that Coles has a dividend payment of AU$0.42 due on January 3, which could be somewhat enticing as well. Recently, COL formed a bit of a “double top” near the AU$19.25 level, but it’s also worth noting that the Wednesday session was a bit of a turnaround, as it had initially dropped quite a bit further than how it closed. Because of this, there are questions as to the volatility going forward, but it is worth noting that COL has been rather resilient most of the year.

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