ASX 200 Market Outlook: Industrials Lead Rebound, Brambles BXB Perks Up

The ASX 200 kicked off the week with a strong rebound, rising 1.3% in its best session in nearly a month. Sector breadth improved sharply, Industrials led the charge, and heavyweight names such as Brambles showed early signs of a potential bottoming pattern. With volume expanding and risk appetite stabilising, the near-term tone has shifted noticeably from last week’s weakness.

View related analysis:

ASX 200 Outlook: Industrials Drive the Week’s Early Strength

ASX 200 Market Snapshot

Monday’s 1.3% gain came with strong breadth: 169 (84.5%) ASX 200 stocks advanced, 21 declined and 10 were unchanged.
Daily trading volume hit its highest level in two months, pointing to bullish initiation.
Ten of eleven ASX 200 sectors rose, led by Materials (XMJ), Info Tech (XIJ) and Real Estate (XRE) — a sharp reversal from Friday’s bearish session.
Industrials (XNJ) rallied 2.7% from the 200-day SMA, marking its best day in 12 weeks.
All ‘big four’ banks finished higher, led by Westpac (+2.3%) and CBA (+1.2%), which continued to gain traction above 150 as highlighted last week.
BHP rose 0.6% after abandoning its final bid for Anglo American, helping to lift Rio Tinto (RIO), Fortescue (FMG) and the broader mining sub-index (XMM).

Chart analysis by Matt Simpson - source: ASX, LSEG

Brambles BXB Eyes Rebound as Momentum Turns Higher

With the industrials sector delivering the strongest performance on Monday, Brambles stands out as a potential long setup within the mega-cap space. The stock has pulled back 13.4% from the August double top, but short-term momentum is starting to turn higher.

A rickshaw man doji formed last week alongside a heavily oversold RSI(2), and a bullish divergence has since developed. Monday’s bullish engulfing candle marked its best day in nearly two weeks and came with its strongest volume in almost two months.

I’m not calling for an immediate return to cycle highs, but price action suggests an inflection point has formed. As long as BXB holds above 23.00, near-term risks appear skewed to the upside.

Chart analysis by Matt Simpson - Source: ASX, TradingView

ASX 200 Futures (API 200) Technical Analysis

A firm lead from Wall Street futures helped ASX 200 futures climb 0.53% overnight. Prices are now approaching the August low at 8590, a level that looks likely to be tested in today’s session. A break above 8600 would open the door for a move toward the February high at 8663.

My near-term bias remains bullish, but I still view this as a countertrend rebound while prices trade beneath the September low at 8752. Until that level is reclaimed, the broader assumption is that the ASX has another leg lower to complete.

Chart analysis by Matt Simpson - Source: TradingView, ASX SPI 200 Index Futures

View the full economic calendar

-- Written by Matt Simpson

Follow Matt on Twitter @cLeverEdge

How to trade with City Index

You can trade with City Index by following these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the market you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

Delayed London Stock Exchange (LSE) Data

The London Stock Exchange (LSE) market data displayed or referenced on this website is provided on a delayed basis and is not in real time. The delay period may vary but is typically at least 15 minutes. This data is intended for information purposes only and should not be relied upon for trading, investment, or other financial decisions. We do not guarantee the completeness, reliability, or suitability of the data for any particular purpose. Users should consult real-time data sources and obtain professional advice before making any financial decisions.