ASX 200 Holds Ground as Trade Sentiment Lifts Confidence

• The ASX 200 remained supported, with dip-buying interest keeping the index buoyant.
• Optimism surrounding a potential US–Japan trade agreement helped lift sentiment in Asia-Pacific markets.
• Sector performance was mixed, though broader market confidence remains intact.

The Australian index has held steady with consistent support in recent days, and Wednesday followed that same trend. The market opened with a gap to the upside—likely a response to reports that the United States and Japan had reached a preliminary trade agreement.

This development may explain why Australian equities appear well-positioned to gain, given the scale of trade between the US and Japan. For many traders, this is viewed as a positive signal for broader Asian trade flows involving the US.

However, whether this momentum extends to US–China trade remains uncertain. That remains a key area to watch in the days ahead.

Woodside Energy Group (WDS)

Woodside Energy rose by 1.45% on Wednesday, recovering part of last month’s decline. Despite the rebound, the stock remains down 2.48% over the past month and 8.43% over the last year.

This suggests the energy company continues to face downward pressure. On the chart, there is still a considerable gap to close following the sharp sell-off seen a few weeks ago, with key resistance near the AU$25.75 level.

Technically, the 200-day EMA remains beneath the price, while the 50-day EMA is approaching a crossover above it. This pattern, often referred to as a “golden cross,” is widely seen as a bullish signal among longer-term market participants.

Northern Star Resources (NST)

Northern Star Resources gained 1.09% on Wednesday. However, the stock remains down 18.76% over the past month, reflecting sustained weakness despite the recent bounce.

On a yearly basis, NST is still up 18.90%, though this latest decline has effectively erased about half of its gains from the last 12 months. This suggests sentiment has shifted sharply in recent weeks.

The chart indicates potential support around the AU$16 level. It’s also worth noting that Northern Star recently acquired Mount Row Mining from Mantle Minerals, expanding its portfolio and potentially increasing its material output.

Qantas Airways (QAN)

Qantas Airways closed flat on Wednesday but remains up 6.13% over the past month. Over the last 12 months, the airline has surged 81.06%, marking a strong performance.

However, Qantas is now facing a class-action lawsuit related to a customer data breach. This development could weigh on sentiment as the stock approaches the AU$11 mark—a level that has acted as firm resistance in recent months.

Traders are also watching the 50-day EMA, currently near AU$10.44. This moving average continues to rise and may offer potential support on any pullbacks.

Disclaimer: The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our client. No representation or warranty is given as to the accuracy or completeness of this information and therefore it shouldn’t be relied upon as such. Any research provided does not have regard to specific financial situations, needs or investment objectives. Vantage accepts no responsibility for any use that may be made of these comments and for any consequences that result. Consequently, any person acting on it does so entirely at their own risk. We advise any readers of this material to seek professional advice where necessary. Without the approval of Vantage, reproduction or redistribution of this information isn’t permitted.