ASX 200 Pulls Back to Kick off the Week

• ASX200 stability supports defensive sectors like consumer staples
• Woolworths edges higher, but volume slowdown raises breakout concerns
• Markets still marking time amid U.S. tariff announcements

During the Monday session, the ASX 200 pulled back slightly from the 200-day EMA, aligning with the highs from Thursday and Friday of last week. It will be interesting to see if this area continues to act as a barrier for bullish traders. The market remains highly volatile, likely responding to the latest tariff announcements and news hitting the wires.

That said, the overall trend has been bullish recently, so a bit of a pullback seems natural after such an extended run. It’s also worth noting that the 50-day EMA sits just below current levels, providing support. Meanwhile, the constant flow of trade deal headlines continues to create confusion and choppy trading conditions across global markets.

RIO Tinto (RIO)

RIO Tinto had a fairly quiet session Monday, gaining just 0.07%. The materials giant remains down 12.11% for the year, reflecting the broader damage to growth expectations. That said, technical traders will note that RIO is hovering around the 50-day EMA and just above the previous floor of a longer-term consolidation zone. It’s also worth noting that strength in the copper market could provide a potential tailwind for RIO’s bottom line moving forward.

ANZ Group Holdings Ltd (ANZ)

ANZ Group Holdings gained 1.63% during the trading session as the financial giant continues to recover from what has been a brutal sell-off recently. The next earnings call is scheduled for 8 May, suggesting that we could see some volatility between now and then. That being said, technical traders will note that ANZ is currently hovering around the 200-day EMA, a level that typically draws significant attention.

Additionally, the AU$30 mark remains a key resistance area where some traders may expect downward pressure. Ultimately, the upcoming earnings report will likely dictate the next major move, with estimates calling for AU$1.128 billion in earnings and AU$11.19 billion in revenue.

Woodside Energy Group Ltd (WDS)

Woodside Energy Group finds itself up 1.75% for the session on Monday as the energy giant works to recover from what has been a very brutal stretch over the past few months. Over the last 12 months, Woodside Energy has fallen by 27.96%. In the past month alone, it has dropped by 13.73%.

One notable development on the chart is that trading volume is starting to pick up. This could suggest a growing interest in the stock. However, it remains a “wait and see” situation to determine if Woodside Energy can truly find its footing. Adding to the headlines, Woodside Energy is currently negotiating with Kuwait Foreign Petroleum to sell a stake in its Louisiana LNG plant, a potential catalyst that traders will be watching closely.

Woolworths Group Limited (WOW)

Woolworths Group gained 0.67% on Monday as we continue to see WOW perform quite nicely. There is no earnings announcement in the short term, so it’ll be interesting to see whether or not WOW can break above the AU$32.50 level, which has acted like a brick wall for some time.

The 200-day EMA is a key indicator that many traders watch closely. This may be setting up for a potential breakout, although the volume reduction is a concern that bulls will need to keep in mind.

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