ASX 200 Perks Up Monday

• Australia shares initially dip, only to end slightly firmer Monday.
• Very mixed bag with Aussie equities.
• RBA meets on Tuesday morning.

The ASX 200 rallied 28.9 points during the session on Monday, as the uptrend looks to be firmly ensconced in this market. It’s worth noting that the Friday session saw a lot of selling pressure, only to turn back around and show signs of life again into the close. The Reserve Bank of Australia has an interest rate decision Tuesday morning, so this will obviously have an influence on the stock market, not necessarily that the RBA is expected to cut rates or anything, but more or less market participants will be paying close attention to the idea of the tone of the accompanying statement.

Westpac Banking Corporation (WBC)

The Westpac Banking Corporation rallied 0.34% for the trading session on Monday and continues to see quite a bit of interest as the company has rallied 49.95% over the last 12 months. The financials giant pulled back toward the 50 Day EMA during the trading day, and what initially looked like a negative session turned around quite rapidly, perhaps due to more of a technical bounce than anything else. The market had recently tried to break above the AU$34 level and formed a bit of a “double top.” If the market were to continue going higher, this is an area that had seen a lot of volume, so it should be watched closely.

Telstra Group Limited (TLS)

Telstra Group gained ½% during the session on Monday, as the communication services giant continues to attempt a turnaround. Telstra initially fell during the early hours on Monday, only to bounce back and attempt a break above the AU$4 level. This is an area in the past that has been somewhat important, so it’ll be worth watching whether or not the giant can find more momentum. As things stand right now, it looks quite a bit like a market that is building pressure. Whether or not the breakout comes is a completely different question, but the AU$0.09 dividend continues to be an advantage to owning this fairly cheap stock.

Coles Group Limited (COL)

Coles Group Limited found itself somewhat flat during the Monday session, as the consumer Staples company hangs around the AU$19 level. Colels Group recently announced a partnership with Stibo Systems in an attempt to manage its data services more efficiently. This cost-cutting measure seems to be something that traders are in favor of, as Coles Group Limited is near all-time highs. Volume has been somewhat inconsistent, so the question will now be whether or not the market is getting a little overbought?

Northern Star Resources Limited (NST)

Northern Star Resources Limited rallied almost a full percent during the session on Monday as the materials giant continues an impressive run. NST has rallied just over 31% over the last 12 months, but in the last 30 days has found itself dropping 1.67%. That being said, analysts at Citigroup cut Northern Star’s rating from Buy to Neutral. The price forecast was cut 7.1% a couple of days ago to the AU$17 level. At this juncture, NST finds itself at AU$16.51, near that target already.

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