Technical Analysis

ChartWatch ASX Scans: a2 Milk, Adairs, Aussie Broadband, Australian Clinical Labs, Cyprium Metals, Flight Centre, OFX Group

Fri 24 May 24, 10:02am (AEST)
charts charting technical analysis
Source: Shutterstock

Key Points

  • Interesting uptrends in today's Scan Lists include: The a2 Milk Co. (A2M), Cyprium Metals (CYM), and OFX Group (OFX)
  • Interesting downtrends in today's Scan Lists include: Australian Clinical Labs (ACL), Aussie Broadband (ABB), Adairs (ADH), and Flight Centre Travel Group (FLT)

In this ChartWatch series I present scan lists based on my trend following technical analysis methodology. The goal is to alert you to the best uptrends and downtrends in the Australian share market.


Criteria for Uptrends List

  • Short term uptrend (ST trend ribbon is light green)

  • Long term uptrend or long term trend is transitioning from down to up (LT trend ribbon is dark green, or LT trend ribbon is amber and contracting)

  • Demand-side price action (rising peaks and rising troughs is preferred, but based upon weight of evidence of other criteria rising peaks only or rising troughs only may be permitted)

  • Predominance of demand-side candles (i.e., white bodies and or downward pointing shadows)

  • The last candle in particular is a strong demand-side candle

Criteria for Downtrends List

  • Short term downtrend (ST trend ribbon is light pink)

  • Long term downtrend or long term trend is transitioning from up to down (LT trend ribbon is dark pink, or LT trend ribbon is amber and contracting)

  • Supply-side price action (falling peaks and falling troughs is preferred, but based upon weight of evidence of other criteria falling peaks only or falling troughs only may be permitted)

  • Predominance of supply-side candles (i.e., black bodies and or upward pointing shadows)

  • The last candle in particular is a strong supply-side candle


Uptrends List

Company

Code

Last Price

1mo %

1yr %

The A2 Milk Company

A2M

$7.03

+20.4%

+30.4%

AGL Energy

AGL

$10.48

+11.6%

+18.0%

BetaShares S&P/ASX Australian Technology ETF

ATEC

$24.17

+3.5%

+32.5%

Botanix Pharmaceuticals

BOT

$0.290

+34.9%

+229.5%

Cyprium Metals

CYM

$0.041

+36.7%

-24.7%

BetaShares Global Sustainability Leaders ETF

ETHI

$14.85

+3.8%

+21.9%

Global X Fang+ ETF

FANG

$26.25

+11.0%

+57.3%

Goodman Group

GMG

$34.17

+10.8%

+69.8%

Gentrack Group

GTK

$8.99

+20.0%

+180.9%

BetaShares Global Cybersecurity ETF

HACK

$11.63

+2.8%

+34.3%

Hub24

HUB

$42.64

+5.9%

+64.0%

iShares Global 100 ETF

IOO

$139.71

+5.4%

+26.2%

iShares S&P 500 ETF

IVV

$53.76

+4.0%

+27.4%

Loftus Peak Global Disruption Fund ETF

LPGD

$4.61

+8.7%

+57.3%

Munro Climate Change Leaders Fund ETF

MCCL

$14.75

+12.1%

+56.9%

Medadvisor

MDR

$0.390

+34.5%

+81.4%

Vaneck Morningstar Wide Moat ETF

MOAT

$128.36

+2.8%

+12.1%

Mesoblast

MSB

$1.180

+31.1%

+8.7%

News Corporation

NWS

$41.59

+5.8%

+48.5%

Nextdc

NXT

$17.98

+10.1%

+55.0%

OFX Group

OFX

$1.985

+27.7%

+28.9%

Origin Energy

ORG

$10.35

+5.2%

+25.0%

Orica

ORI

$18.69

+1.9%

+19.4%

Paragon Care

PGC

$0.375

+10.3%

+50.0%

Platinum Capital

PMC

$1.423

+7.8%

+12.9%

Perenti

PRN

$1.015

+10.3%

-13.6%

QBE Insurance Group

QBE

$18.05

+2.6%

+22.5%

Qube Holdings

QUB

$3.66

+8.9%

+18.4%

Redox

RDX

$3.23

+7.7%

0%

Regal Asian Investments

RG8

$2.10

+8.0%

+4.0%

South32

S32

$3.85

+16.0%

-4.5%

Global X Semiconductor ETF

SEMI

$17.71

+15.0%

+70.1%

Superloop

SLC

$1.405

+7.7%

+117.8%

Spartan Resources

SPR

$0.720

+19.0%

+503.9%

SPDR S&P 500 Trust ETF

SPY

$805.00

+4.0%

+27.8%

Sovereign Metals

SVM

$0.545

+4.8%

+26.7%

Southern Cross Electrical Engineering

SXE

$1.660

+39.5%

+147.8%

Global X Morningstar Global Technology ETF

TECH

$105.45

+4.0%

+20.3%

Treasury Wine Estates

TWE

$12.04

+0.4%

-7.3%

Vanguard Ethically Conscious International Shares Index ETF

VESG

$88.74

+4.0%

+23.2%

VGI Partners Global Investments

VG1

$1.890

+3.3%

+15.2%

Vulcan Energy Resources

VUL

$5.54

+82.8%

+31.9%

Xero

XRO

$134.84

+10.9%

+23.1%

Today's uptrends List

Interesting charts from today's Uptrends List πŸ”ŽπŸ“ˆ

The a2 Milk Co. (ASX:A2M)

The a2 Milk Co. (ASX-A2M) chart 23 May 2024
The a2 Milk Co. chart

A picture of excess demand, and 100% deserves to be in this list, but something I didn't discuss in Ed 1 of ChartWatch ASX Scans was the concept of watching the price action very closely at major points of supply.

A2M has arrived at the major highs from Jan-Feb last year. Remember, an old point of supply is only a potential supply point in the future. The candles will tell us if supply is indeed manifesting there. Remember: Supply manifests itself in the candles as black bodies and or downward pointing shadows.

So, given the all white-candle affair in the supply zone so far for a2M, all appears fine and good. But, it's worth continuing to watching the price action closely from here.

Cyprium Metals (ASX: CYM)

Cyprium Metals (ASX-CYM) chart 23 May 2024
Cyprium Metals chart

This is an interesting (early stage) uptrend continuation setup. The long term downtrend ribbon has neutralised, and there is a heathy battle between demand and supply within the now-neutral ribbon.

Thursday's candle sets a higher trough, and the long white body on some decent volume signals the demand-side is grappling for control in line with the well established short term uptrend. That short term uptrend appears to be offering dynamic demand.

A close above the top of the long term trend ribbon at $0.045 would signal the commencement of a new long term uptrend.

OFX Group (ASX: OFX)

OFX Group (ASX-OFX) chart 23 May 2024
OFX Group chart

Similar to yesterday, I thought I'd show an early stage uptrend turnaround setup, and then one that is more progressed. The demand side showing since the OCF price closed above its long term trend ribbon on 20 May is impressive – particularly the gap and run on 21 May.

Gaps and runs of this nature are symptomatic of very strong excess demand. Importantly, there’s been very little downside volatility since then. The supply-side appears content to hang on for more here and Thursday’s white candle suggests the appetite of the demand-side remains intact.

The volume surge suggests a massive increase in interest here, as well as some much needed supply removal.


Downtrends List

Company

Code

Last Price

1mo %

1yr %

Aussie Broadband

ABB

$3.50

-2.0%

+17.1%

Australian Clinical Labs

ACL

$2.21

-9.4%

-36.3%

Adairs

ADH

$1.780

-17.6%

-20.5%

Bank of Queensland

BOQ

$5.85

-5.5%

+4.5%

De Grey Mining

DEG

$1.105

-16.9%

-22.4%

Flight Centre Travel Group

FLT

$20.00

-4.7%

-6.0%

Lendlease Group

LLC

$5.93

-8.9%

-24.7%

National Storage Reit

NSR

$2.18

-1.8%

-14.5%

Region Group

RGN

$2.14

-3.2%

-13.4%

Terracom

TER

$0.225

-6.3%

-63.7%

Today's downtrends list

Interesting charts from today's Downtrends List πŸ”ŽπŸ“‰

Australian Clinical Labs (ASX: ACL)

Australian Clinical Labs (ASX-ACL) chart 23 May 2024
Australian Clinical Labs chart

This is an interesting downtrend continuation setup. It's a picture of excess supply, of selling into rallies, and of panic on downward pushes. The $2.26 point of demand set on 28 Feb appears to be dealt with by Wednesday's long black candle. Yesterday, there was little response from the demand side and resolute opposition from the supply side.

Aussie Broadband (ASX: ABB)

Aussie Broadband (ASX-ABB) chart 23 May 2024
Aussie Broadband chart

These next three charts are interesting potential downtrend turnaround setups. First up, ABB which appears to have decisively closed below its long term trend ribbon with yesterday's supply-side candle.

Adairs (ASX: ADH)

Adairs (ASX-ADH) chart 23 May 2024
Adairs chart

The next interesting downtrend turnaround setup is ADH. It's short term downtrend is particularly well-established, and it's also providing reliable dynamic supply. Price action and candles are consistent with strong supply-side control.

I also note the tell-tale close below the long term trend ribbon, then rally back up, test, and fail. Effectively the price rebounded lower after touching the ribbon – evidence of dynamic supply.

Flight Centre Travel Group (ASX: FLT)

Adairs (ASX-ADH) chart 23 May 2024
Flight Centre Travel Group chart

I suggest this is quite an early stage downtrend continuation setup. FLT has had a few goes as closing below it's long term trend ribbon. Thursday's attempt may or may not be the decisive one!


Important considerations when using the ChartWatch ASX Scan Lists:
1. The future is unknown. Anything can happen to change the trends in the lists above. A stock in a perfect uptrend or downtrend may not remain that way by the close of trading today. 2. These lists are not exhaustive, they are curated by Carl. You will find that certain stocks might not appear in a particular list on consecutive days but might reappear when Carl feels it deserves to return to the list. 3. This is not a recommendation service, merely an aid to help you better understand the workings of Carl’s technical analysis model in a practical way. Carl will not alert you to stocks that have dropped off a list because their trend has changed – it is up to you to apply the criteria to determine why a particular stock might not still be included. 4. This is general, educational information only – always do your own research.

 

Written By

Carl Capolingua

Content Editor

Carl has over 30-years investing experience, helping investors navigate several bull and bear markets over this time. He is a well respected markets commentator who specialises in how the global macro impacts Australian and US equities. Carl has a passion for technical analysis and has taught his unique brand of price-action trend following to thousands of Aussie investors.

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