Are ASX Property Stocks About to Rally?

Gary Glover's weekly market insights

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Christopher Hall
Christopher Hall
Stockbroking, investment manager and adviser since 2005. No advice provided on Bizfeed.

Property shares are being accumulated on the ASX. Investors are taking advantage of the beaten-up share prices and buying these long-term yielding shares that are set to rally.

When reviewing all of the property shares on the ASX we can see that there is strength across the board, which indicates accumulation in the whole sector.

Finer Market Points is known for ranking the momentum score of all ASX-listed shares through our daily posts. We also monitor the Launch Pad and Delta 6 indicators too.

Strength of the Property Theme

When we calculate and rank the Momentum score of all property companies on the ASX we can assess the strength of the theme.

This is done by comparing the Momentum behaviors of the Top 6, Top 10 and Top 15 constituents within the Property theme.

Below shows the Top 6 by RSI in Property already improving their momentum scores (blue line far left). Top 10 and 15 have not yet broken out.

ASX Property Sector Analysis

When looking for a sector that is under accumulation, we would expect the Top 6 Momentum (Left chart, blue line) to be market-leading or at least base building. In this case it’s improving in momentum ranking on the ASX. The same is the case for the Top 10 and Top 15 (middle and RHS side respectively).
If there is divergence withing these blue lines, then the theme is weak as other parts of the ASX would be improving their momentum at a faster rate.

Taking the analysis one step further, the middle chart shows Top 10 improving in both momentum and launch pad (middle orange line) – suggesting 6th to 10th are coiled on the Launch Pad or pulling back under the recent highs. Additionally, the relative performance of these property shares to the market yesterday was strong shown by the Delta 6 (grey line improving).

The chart on the right shows that the Top 15 shares that the Property theme is stronger still between 11th and 15th rankings. This all suggested there is underlying strength in the theme and accumulation across the group.

Strength Across Theme’s Breadth

Taking another cross-section of this ASX theme, we can see that within the Property theme is working in unison. The below charts show unison in within the group, divergence shows weakness in a theme, or lack of breadth.

ASX Property Sector Analysis Top 15 stocks

Looking at the charts above, the Momentum, Launch Pad and Delta 6 scores across the theme appears to be climbing together, further suggesting wide-spread accumulation, or participation with theme-wide breadth.

Note that top-performing themes will have a falling Delta 6 chart which leads a falling Launch Pad chart, all while the Momentum chart continues to lead the market.

In other words, the Launch Pad is a leading indicator to the Momentum and Delta 6 is a leading indicator to the Launch Pad.

Which Companies are in the ASX Property Sector?

The largest Property shares on the ASX are: Goodman Group, Scentre Grp, Stockland, Vicinity Centres, Mirvac Group, GPT Group, Dexus, Charter Hall Group, National Storage.

Note: This is not advice, nor a trade recommendation. This is only market information and data derived from the ASX.

Each week on Finer Market Points Produces the 30 30 List, the Top 30 Momentum Companies on the ASX and the Top 30 Launch PAd stocks. Friday’s video interviews Gary Glover about his analysis of the 30 30 List of their respective charts.

https://www.youtube.com/@finermarketpoints

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