Source: Krish Capital Pty Ltd

Index Update: The Australian sharemarket advanced on Tuesday, lifted by strength in resources and a positive lead from Wall Street’s record highs. The S&P/ASX 200 closed 24.70 points higher, or 0.28%, at 8,877.70. Over the past five sessions, the index has risen 0.84% and now sits 1.95% below its 52-week peak.

Sector performance was broadly positive, with eight of 11 finishing in the green. Among the top three, Energy led with a 0.94% rise, rebounding from recent weakness, while Materials gained 0.68% and Consumer Discretionary rose 0.79%. On the downside, Health Care slipped 0.33%, Consumer Staples fell 0.32% and A-REIT is down 0.06%.

Macro Update: U.S. and Chinese officials announced Monday they have reached a framework agreement to transfer TikTok to U.S.-controlled ownership. The deal, which officials said would address U.S. security concerns while maintaining certain “Chinese characteristics,” is expected to be finalized during a scheduled Friday call between President Donald Trump and President Xi Jinping. TikTok, with about 170 million U.S. users, has been central to trade negotiations between the two countries in recent months.

Top Market Movers: Deep Yellow (ASX:DYL) led the gains, rising 9.19% to AUD 2.08, followed by Boss Energy (ASX:BOE), up 7.05% at AUD 1.98, and Clarity Pharmaceuticals (ASX:CU6), which climbed 6.81% to AUD 3.45. On the downside, Super Retail Group (ASX:SUL) fell 4.29% to AUD 16.52, Bapcor (ASX:BAP) slipped 3.18% to AUD 3.35, and Guzman y Gomez (ASX:GYG) declined 2.79% to close at AUD 25.79.

Commodity Update: The U.S. dollar weakened on Tuesday as markets awaited the Federal Reserve’s expected policy easing. Gold prices touched a record before slipping 0.06% to USD3,716.50. Silver dipped 0.11% to USD 42.91, and copper declined 0.53% to USD 10,112.00. Brent crude rose 0.30% to USD 67.63, extending gains amid Ukraine’s strikes on Russian oil facilities, which heightened supply concerns. Meanwhile, Russia launched a major assault on Zaporizhzhia after recent Ukrainian attacks.

Our Stance: The Australian sharemarket closed higher on Tuesday, supported by resource strength and Wall Street’s momentum, with the S&P/ASX 200 adding 0.28% to 8,877.70. Most sectors advanced, led by Energy, Materials, and Consumer Discretionary, while Health Care and Consumer Staples lagged. Gains in uranium and pharmaceuticals highlighted risk appetite, though retail stocks faced pressure. Globally, a U.S.-China TikTok framework deal provided a geopolitical lift. Commodities remained mixed, with gold retreating slightly after hitting a record. Markets appear resilient but remain sensitive to U.S.-China developments, Fed policy shifts, and ongoing geopolitical tensions shaping investor sentiment.

In its latest session, the S&P/ASX 200 Index advanced 24.70 points to close at 8,877.70, supported by a bullish candlestick formation and strong trading volumes clear signs of sustained investor confidence. On the daily chart, the index remains firmly above its 50-period Simple Moving Average (SMA), a dynamic support level that underpins the prevailing positive short-term outlook. A critical support zone is identified at 8,790.50; holding above this threshold will be key to maintaining the integrity of the current uptrend. On the upside, a decisive breakout above this support-turned-resistance area would provide strong bullish confirmation, potentially unlocking further upward momentum and shifting broader market sentiment in favor of the bulls. From a wider perspective, the index’s sustained position above the 21-period SMA on the weekly chart underscores its resilient long-term bullish foundation, reinforcing strength across multiple timeframes.