ASX 200 Attempts a Recovery

• ASX is still trying to recover.
• US sells off significantly on Monday.
• Gold markets help RIO and others.
• Trade concerns continue to be the main issue.

During Monday’s trading session, the ASX 200 rallied modestly, approaching the crucial AU$7,800 level. Global equity markets appear to be attempting to form a basing pattern, offering a glimmer of stability. However, it is worth noting that US markets experienced a sharp sell-off later in the same session, which could lead to increased volatility ahead should Australia follow a similar risk sentiment trajectory.

The AU$7,800 zone continues to act as a significant resistance level, having repelled previous rallies, and traders are likely to remain cautious around this area. Additionally, a gap from approximately two weeks ago remains a key technical level that many will closely monitor.

Woolworths Group Limited (WOW)

During the trading session on Monday, WOW gained 0.99%, as the consumer staples giant attracted renewed interest with the price now trading above the 200-day EMA. Over the past month, WOW has risen 13.13%, reflecting a broader investor shift toward safer assets amid global market uncertainty. The AU$31 level continues to act as a key zone of technical significance, having previously served as both support and resistance.

Looking ahead, market participants will be closely watching the AU$32.50 level, which stands out as a notable resistance barrier from recent trading history.

RIO Tinto (RIO)

RIO Tinto gained 2.93% during Monday’s trading session, as the materials giant continues its recovery amid broader market volatility. While conditions remain choppy, the recent surge in gold prices may be offering some indirect support to RIO, keeping it attractive to certain traders.

Technically, the AU$114 level remains key, having previously acted as support and is likely to draw attention as a potential resistance point. In addition, sentiment was buoyed by news that RIO has secured fast-tracking approval for a US-based copper mine, an encouraging development that could spark renewed investor interest.

Transurban Group (TCL)

Transurban Group gained 0.23% during the trading session, extending its strong performance over the past year. The stock has risen 20.38% over the last 12 months, with notable upward momentum in recent months.

However, the AU$14 level continues to act as a significant resistance zone, as the market once again pulled back after briefly trading above it. A decisive break above this level could attract renewed buying interest, but for now, the stock remains in a tightly contested battle between bulls and bears.

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