ASX Sector Momentum: Resource Renaissance Amidst Growing Pains

Robert Luong

25 March 2026 11:02 AM AEDT

ASX Sector Momentum: Resource Renaissance Amidst Growing Pains

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Key Highlights

The Materials Surge: The Materials (XMJ) and Resources (XJR) sectors are the market’s primary "Improving" candidates, exhibiting aggressive vertical momentum as they head toward the Leading quadrant.
Energy Exhaustion: While still in the Leading quadrant, the Energy (XEJ) sector has developed a sharp downward hook, suggesting its period of extreme outperformance may be reaching a near-term peak.
Financials & Tech Fading: Both Financials (XFJ) and Info Tech (XIJ) have rotated into the Weakening quadrant, reflecting a loss of relative strength as interest rate and yield volatility persist.

The latest momentum data reveals a significant reshuffling of market leadership. As the initial excitement in technology and financials begins to cool, we are witnessing a powerful "hook" in momentum for the resources sector, signaling a shift back toward tangible assets.

Daily ASX Sector Momentum chart – 24/03/2026

ASX Sector Daily Momentum Chart (at the closing price of 124th March 2026). Powered by: amibroker.com

Daily ASX Sector Momentum Summary – 24/03/2026

Momentum Analysis: Tracking the Rotation

The Improving "Recovery" Play

Materials & Resources (XMJ & XJR): These sectors are the standout movers on the chart. After a period of being "Lagging," they are now cutting upward through the Improving quadrant. This trajectory suggests a fundamental re-rating of blue-chip mining giants as commodity prices stabilize.

The Leading "Defensive" Anchors

Staples (XSJ) & Utilities (XUJ): These sectors remain firmly entrenched in the Leading quadrant. Their stable, rightward movement indicates they are still being used as safe havens for cash flow and equity protection amidst broader index uncertainty.

The Weakening "Growth" Pillars

Info Tech (XIJ): Tech has officially crossed from Leading to Weakening. The momentum tail is pointing toward the Lagging zone, likely due to the ongoing pressure of high bond yields on growth-heavy earnings
Financials (XFJ): Drifting deeper into the Weakening zone, the banking sector is struggling to maintain its relative strength as concerns over credit growth and economic cooling outweigh previous margin

The Lagging "Strugglers"

Industrials (XNJ) & Health Care (XHJ): Both sectors remain stuck in the Lagging quadrant. While Health Care is showing a minor upward curl, it lacks the aggressive conviction seen in the Resources space.

Strategic Outlook

The RRG for March 24, 2026, points toward a "Cyclical Pivot." With Energy cooling and Financials/Tech weakening, the momentum is clearly flowing into Materials and Resources. Investors looking for the next "Leading" candidates should focus on sectors moving with strong verticality through the Improving zone, while maintaining defensive exposure in Staples and Utilities to buffer against inflation-linked volatility.

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