ASX 200 Prints an Exhaustion Candle

• ASX 200 gives back much of the gains for Wednesday.
• ASX 200 mirrors US market trajectory amid global recovery sentiment.
• Global trade tensions remain in focus, although abating somewhat.
• Both sectors in Australia advanced, but some major materials stocks lagged behind.

During Wednesday’s trading session, the ASX 200 rose slightly but ended up forming a shooting star, a candlestick pattern often associated with exhaustion. This comes after a strong two-week rally, suggesting that the market may be running out of momentum. The ASX 200 continues to move in tandem with US indices, as traders start shifting their focus from dramatic headlines to the practical impact of global tariffs.

Westpac Banking Corporation (WBC)

Westpac Banking Corporation rose 0.55% on Wednesday, continuing its upward trend with a 26.5% gain over the past year and nearly 3% over the last month. With an earnings report scheduled for release on Monday, forecasting a profit of AU$1.005 billion and revenue of AU$11.03 billion, the company is drawing close attention from investors. Given the strong bullish momentum of the past two weeks, any short-term dip could be viewed as a buying opportunity.

Aristocrat Leisure Ltd (ALL)

Aristocrat Leisure climbed 1.86% on Wednesday, extending its impressive 67.44% annual gain. With no earnings pressure until 15 May, the stock broke above the 50-day EMA and closed near session highs, signalling continued momentum. While the chart shows potential for volatility, bullish sentiment remains dominant given the stock’s stellar year-to-date performance.

ANZ Group Holdings Ltd (ANZ)

ANZ Group Holdings gained 1.05% on Wednesday, pushing closer to the key AU$30 resistance level after a strong short-term rally. The stock is up 6% year-to-date, but momentum may be stretched heading into Thursday’s earnings call. A decisive break above AU$30 could signal the potential for continued upward movement.

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