ASX 200 Slightly Positive on Monday

• Australia fairly quiet on Monday.
• Very mixed results among sectors.
• United States closed for Monday trading leaving a bit of a question as to momentum until Tuesday.US markets closed on Monday, leaving momentum uncertain until trading resumes

The ASX 200 opened higher on Monday, indicating initial bullish sentiment; however, the index traded within a narrow range for the remainder of the session as market participants appeared uncertain about the next directional move. The AU$8350 level has offered short-term support, in a market that has been very positive for quite some time.

We are trading sideways at the moment, which may suggest that the market is awaiting new information to determine its next move. For what it is worth, the United States was closed down for Memorial Day, so this may have Australia waiting to see how the Tuesday session plays out in New York.

Commonwealth Bank of Australia (CBA)

Commonwealth Bank of Australia was relatively flat during the Monday session, gaining just 0.02%, but it must be kept in the back of your mind when looking at this stock that the financial giant has rallied 46.28% over the last year, and in the last month, the CBA stock has risen 5.56%. It is worth noting that CBA is getting close to the all-time high made just a few sessions ago, and it looks bullish. Based on previous price action, the market will likely find significant support around the AU$162 level , where the 50-day EMA currently sits.

Aristocrat Leisure Limited (ALL)

Aristocrat Leisure Limited rose by 0.64% on Monday. Over the past year, the consumer discretionary company has surged by 35.82%, but it has faced some recent weakness, falling 4.87% over the past month. It is worth noting that on Wednesday, 14 May, ALL reported a surprise earnings miss, and the stock may still be facing downward pressure as a result.

Chart 3: Aristocrat Leisure Limited daily price chart

Coles Group Limited (COL)

Coles Group gained 0.28% in relatively quiet trading on Monday. The consumer staples giant has seen a 35.01% gain over the last year, and a 2.55% gain over the last 30 days. Currently, COL appears to be in a consolidation phase, as the market continues to absorb losses from a few weeks prior.

Notably, the AU$22.50 level remains a key resistance point, while the AU$21 level is providing significant support. The 50-day EMA is trending upward, and trading volume has been slightly elevated over the past several weeks.

Cochlear Limited (COH)

Cochlear Limited rose by 0.52% on Monday, closing at AU$269.75. The company has posted a modest gain of 1.94% over the past month; however, it remains down 15.98% over the past year, highlighting continued vulnerability despite recent signs of recovery. Over the past several months, Cochlear has been forming a basing pattern, with increasing volume potentially indicating the start of an “accumulation phase,” a period in which institutional investors gradually build positions.

The 200-day EMA is currently near the AU$284 level; a decisive break above this threshold would likely confirm that the accumulation phase has concluded. Overall, Cochlear appears to be making a concerted effort to reverse its previous downtrend. It is also worth noting that the company offers a dividend of AU$2.15.

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