ASX 200 Still Messy

• ASX 200 remains stagnant on the surface level.

• Sectors vary, just as companies do underneath.

• Unlike the US and EU, Australia seems to look at each individual company.

The ASX 200 continues to be very messy in general, as there is a lot of bifurcation between companies at the moment. This is a bit of a departure from a lot of the world’s largest indices, such as the NASDAQ 100 or the S&P 500, which are both essentially driven by just a couple of stocks. When looking at Australia, the action is quite varied from sector to sector, and company to company. 

Ultimately, this is a market that seems to see the $AU7900 level as a massive barrier to further gains. The market has failed to break above there for some time now, and it is becoming increasingly obvious that we will need some kind of momentum building in order to take that ceiling out.

Woolworths Group

Woolworths Group continues to look strong, as it is currently finding plenty of buyers on short-term dips. The stock currently sits just below the crucial 200 day EMA indicator. However, volume in this market has picked up quite a bit recently, and this suggests that there is increasing interest in this stock. This is a market that seems to be leading the way higher at the moment. 

Fortesque

Fortesque continues to look for upwards momentum. At this point, the market continues to dance around the $AU21.00 level, as it has held as support over the last few days. This is an area that has been important a few times in the past, but it is clear that Fortesque just doesn’t have enough momentum to turn things around quite yet. 

That being said, this is a market that sees even more past support near the $AU20 level, and it is a very real possibility that the market will do everything it can to stay above there once it is all said and done. The recent “death cross”, when the 50 day EMA drops below the 200 day EMA, suggests that there is a deep malaise here. However, this is a company that could play “catch up” in the future.

ANZ

ANZ continues to see a lot of lackluster action, as the market continues to pay close attention to the $AU27.50 level. This is an area that has shown itself to be important more than once, but we now have the 200 day EMA racing toward that level. Because of this, there is the very real possibility that traders will continue to defend this region, perhaps even becoming aggressive overall. 

On the upside, the market is watching the $AU29.50 level as a ceiling. This is an area that traders have struggled with, but it is worth understanding that that that market had previously been in an uptrend, so there is the possibility that “consolidation leads to continuation.”

The Main Takeaway

The main takeaway here is that Oz will continue to trade quite differently than the rest of the world, especially the United States. The overall direction might be similar to each other, but unlike the USA, there is no Nvidia in Australia to run the entire market. The concentrated monetary flow in the US is not a healthy thing, and the EU is starting to show similar behavior. Meanwhile, in Australia it appears that the market is still a “market of stocks”, something that makes it stand out from its contemporaries. 

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