ASX 200 Continues to Rise

• Australian stocks continue to grind to the upside.
• All things considered, indices around the world remained quiet on Monday.
• The United States, Canada, and Japan all had bank holidays.

On Monday, the ASX 200 rallied slightly as it continued to test towards 8,300. Technical traders continue to look at that level as a cap to the upside, and one would have to assume that if the market does break above there, some follow-through momentum could enter to support the market to drive the index higher. It is also worth noting that recently, we have seen the market pull back multiple times, only to turn around and show signs of strength.

Commonwealth Bank of Australia (CBA)

CBA rallied 87c, as the uptrend that traders have been paying attention to continues to offer support. It’s also worth noting that there have been a couple of pundits suggesting that resilient earnings are going to be released relatively soon. With this, CBA continues to attract a certain amount of attention.

Wesfarmers Ltd (WES)

Wesfarmers showed resilience during the Monday session, gaining 68c as the market continues to hover around the $70 level. It’s worth noting that the 50 Day EMA sits above, perhaps offering a little bit of psychological resistance as WES has been consolidating for some time now. Ultimately, its up almost 33% for the year, but it has been very quiet over the last month, gaining only 7c in that period. Volume remains light, suggesting that players could be looking at the stock through the prism of quiet and sideways range bound trading, as we continue to digest the gains from early in the year as the consumer discretionary giant offers an AU$1.07 dividend regularly.

James Hardie Industries Plc (JHX)

James Hardie gained 2.74% on Monday, as the materials giant stands out above most other stocks in the Asia-Pacific region. From a technical standpoint, it does make a certain amount of sense that the 200 Day EMA has caused a bit of a reaction, and the volatility in this market seems to be something that is being embedded, as the last month has seen a gain of 73c, while a year look back shows a gain of 28.29%. Keep in mind that the commodity markets have been very robust, and that of course will have a major influence here in JHX.

Qantas Airways Ltd (QAN)

Qantas Airways saw a slight gain of 0.14% for the trading session on Monday, as the airline continued to grind back and forth after rising 43.03% in the last 12 months. The $6.90 level is an area of interest, and the 50 Day EMA is racing toward it. Ultimately, this is a market that has been recovering most of the year, as the latest surge has been strong, and volume has been picking up overall during the last several weeks. As things stand, technical analysts may also look at this through the prism of potentially forming a bullish flag.

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