ASX 200 Remains Sluggish

• ASX rallies but looks a bit tired at the moment.
• Widespread mixed bag as far as stocks are concerned.
• Rates continue to be a major factor.

During Wednesday’s trading session, the ASX 200 broke above the 8,350 level, only to reverse course and form a lackluster candlestick. Interestingly, the market has struggled to break above the previous trendline. With that being the case, it seems that resistance is starting to become a bit of a problem, along with global risk appetite. While the ASX 200 has shown some resilience, the reality is that indices worldwide continue to reflect concerns, particularly with rising interest rates in countries like the United States.

Westpac Banking Corporation (WBC)

Westpac Banking Corporation saw a strong session on Wednesday, gaining 1.4% for the day to close at AU$33.33. The financial giant has rallied almost 45% over the last year and is now threatening to break out to the upside. The AU$34 level has been significant resistance, and it’s probably worth noting that the chart looks as if it is forming a bit of an ascending triangle. Technical traders are likely to continue using this as a proxy for interest rates, as rising rates could potentially benefit financial stocks and banks globally, not just in Australia.

Transurban Group (TCL)

Transurban Group was somewhat noisy during the trading session, closing at AU$13.60. The industrial corporation ended up dropping 0.44% for the day, for the day but remains up 6.42% over the past month, as the market appears to be working off some of the excess froth seen recently. As traders look to the upside, they have to be cognisant of the AU$14 level, which serves as significant resistance. Underneath, we have the 50 Day EMA sitting around the AU$13.20 level and rising, potentially providing a technical support level if the uptrend continues.

Coles Group Ltd (COL)

Coles Group had a positive session Wednesday, as the Consumer Staples giant continues to see inflows. The 0.53% gain for the day contributes to a 17.54% gain over the past year. Although a recent earnings call delivered mixed results, the market appears to be anticipating some form of breakout. The AU$19.50 level has been the recent swing high, and it looks like the market is trying to do everything it can to reach that region. Underneath, there seems to be significant support near AU$18.50.

Santos Ltd (STO)

Santos Limited had a slightly positive session, but it looks as if the AU$7 level has created significant technical resistance. In fact, the market at one point looked like it was going to rally rather significantly, but it gave up most of the gains to close up just 0.29% gain. The shooting star pattern for the day suggests that the market may have gotten a little bit ahead of itself, especially considering it was as low as $6.30 just two weeks ago. At this point, Santos seemed to be a bit overextended.

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