ASX 200 Continues to Drift Aimlessly

• ASX 200 continues to drift aimlessly.  

• ASX 200 approaching significant support.  

• ASX 200 continues to see major winners.  

• “Knock on effect” is very much in play.  

During the trading session on Wednesday, the ASX 200 drifted slightly lower, as it looks like the market is trying to find its base. While somewhat negative over the last couple of days, it is worth noting that the market has generally been in an uptrend for several months, and from a technical analysis standpoint, it’s probably worth noting that the market is getting fairly close to, but still holding above  the crucial 50 Day EMA.  

The “knock on effect” from other indices around the world will continue to be felt in this index, as it is smaller than many others. However, it is worth noting that the market will likely continue to see a lot of influence from the commodities and financial sector, which are several of the biggest ones in Australia.  

BHP Group Ltd (BHP)  

BHP Group gained the 69c on Wednesday, as it continues the 5.18% gain posted last month. For the last year, BHP is down 2.66%, but the materials giant seems to be trying to build a base. During the last 24 hours, the company has settled a 170 billion Brazilian real settlement due to a 2015 dam collapse, perhaps relieving a little bit of pressure on the stock, but it is also worth noting that the stock is trading right around the crucial 50 Day EMA. Volume has picked up a little bit, but it is still fairly normal.  

ANZ Group Holdings Ltd (ANZ)  

ANZ Group Holdings rallied 0.35% on Wednesday but is still down 1.66% for the month. However, when looked at through the prism of the last year, it is but a “blip on the radar”, as the stock gained 24.54% in 2023. The financial giant continues to threaten a major breakout, focusing squarely on the $32 level. Short-term pullbacks have been part of the scenario here, but it looks as if there is a hard base somewhere near the $30 level that traders are paying close attention to.  

Aristocrat Leisure Limited (ALL)  

Aristocrat Leisure Limited gained 1.43% Wednesday, as the company is now up 2% for the last month. Over the last year, ALL is up a whopping 47.92% as the consumer discretionary giant has been very bullish most of the year, but the last couple of weeks has seen some consolidation. It seems to be that the market is paying close attention to the $60 level, as it has been a little bit of a “ceiling” in the market. The 50 Day EMA sits near $56.30 and is rising. Technical traders will be paying close attention to that. A couple of weeks ago, Goldman Sachs raised their price target to essentially where we are sitting now. It appears as if the volume is steady, the market is just simply looking for some reason to continue going higher.  

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