ASX Trend Watch: Energy and Financial Giants Lag as Utilities, Retail, and Health Stay Resilient

Highlights:

• Downtrends continue in energy majors and diversified financials including Woodside and Macquarie

• Defensive sectors such as utilities, retail, and healthcare maintain steady upward momentum

• Technical scans reflect overall market weakness despite pockets of persistent strength

The energy sector shows continued weakness on the ASX, as evidenced by the extended downtrends in companies such as Woodside Energy and Santos. Both stocks have experienced ongoing declines across multiple trading sessions. These downward moves align with broader softness in commodity-linked equities.

The presence of multiple energy names on the latest Downtrends Scan List supports the trend-following criteria frequently observed in cyclical sectors. Whitehaven Coal and Mineral Resources also feature prominently, reinforcing the notion that resource-driven equities are currently under sustained selling pressure.

Financials Lose Momentum

Financials appear prominently across the latest technical scans, particularly Macquarie Group and ANZ. Macquarie's long-standing downtrend continues without signs of reversal under the scan criteria. The downward trajectory is consistent with broader sentiment shifts impacting global capital markets and asset management businesses.

AMP and Hub24 also appear in the list of stocks trending lower. The inclusion of several diversified financial names underlines the loss of upward momentum within the sector. The persistent downtrends are largely in line with previous signals observed over recent months.

Technology and Communications Fall Back

Technology and communications have shown consistent weakness. Life360 and Audinate continue to experience downward movement in their price action, having appeared multiple times in the Downtrends Scan List. These trends reflect selling activity in high-growth names, particularly those exposed to offshore market volatility or currency fluctuations.

Appen also maintains a position on the downtrend radar. These stocks have experienced repeated technical breakdowns, and their continued presence on the list suggests prevailing selling interest remains intact.

Utilities and Staples in Uptrend

In contrast to broad market weakness, the utilities and staples sectors remain among the few areas of technical strength. APA Group continues to demonstrate relative resilience, with its recent price action satisfying strict uptrend criteria. The utilities segment often performs more consistently during periods of market uncertainty, reflecting its defensive nature.

Coles Group also features prominently in the Uptrends Scan List. The retail food operator has shown steady performance over multiple sessions, supported by strong excess demand as per trend-following metrics. The consumer staples sector remains one of the few bright spots on the ASX.

Healthcare Trends Steady

Healthcare stocks also exhibit stability, with Medibank Private continuing to appear among the most consistent uptrends. The stock has demonstrated a sustained climb underpinned by strong demand characteristics. Healthcare names are typically less cyclical and often retain buying interest during periods of market turbulence.

The continued upward trajectory of Medibank aligns with other names in the sector maintaining longer-term price strength. This resilience is consistent with the broader defensive characteristics typical of healthcare stocks.

Bearish ETFs Signal Market Sentiment

Exchange-traded funds designed to benefit from declining markets also feature prominently in the Uptrends Scan List. These include the BetaShares Australian Strong Bear ETF and the BetaShares US Strong Bear ETF. The inclusion of these inverse products in uptrend scans reflects a prevailing bearish sentiment across both domestic and international equities.

Global X’s Ultra Short Nasdaq-hedged ETF also continues to trend higher, further underlining defensive positioning among traders. The uptrend in these products reinforces the broader weakness highlighted by the large number of individual equities showing persistent downtrends.