ASX Sector Momentum: Utilities Surge While Resource Heavyweights Carve a Base

Team Kalkine

31 March 2026 11:44 AM AEDT

ASX Sector Momentum: Utilities Surge While Resource Heavyweights Carve a Base

Image Source: shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

The Utilities Anomaly: Utilities (XUJ) is the undeniable standout. It is the only sector on the entire board exhibiting a strong upward and rightward trajectory, gaining both relative strength and momentum simultaneously.
Energy Momentum Collapse: While Energy (XEJ) maintains the highest absolute relative strength (positioned furthest to the right), its momentum vector has plunged straight down to the zero line, indicating its aggressive outperformance phase is undergoing severe mean reversion.
The Mining Curl: Deep in the Lagging quadrant, Materials (XMJ) and Resources (XJR) are quietly sustaining their upward momentum curls. While still underperforming the benchmark, this vector shift is a classic precursor to a cyclical basing structure.

The latest momentum chart presents a highly polarized momentum landscape, characterized by a sharp defensive rotation and a broader index struggling with structural fatigue. For those tracking the underlying JdK RS-Ratio and RS-Momentum vectors, the visual data highlights a market actively de-risking, with capital heavily concentrated in immediate, tangible yield.

Daily ASX Sector Momentum chart – 30/03/2026

ASX Sector Daily Momentum Chart (at the closing price of 30th March 2026). Powered by: amibroker.com

Daily ASX Sector Momentum Summary – 30/03/2026

Quadrant Analysis: Tracking the Vectors

The Solitary Leader

Utilities (XUJ): Moving vertically through the Leading quadrant, XUJ is capturing the lion's share of defensive capital. This aggressive North-East vector confirms that institutional positioning has shifted from growth proxies to regulated cash flows.

Fading Leaders & Stalled Recoveries

Energy (XEJ) & Financials (XFJ): Both reside in the Leading quadrant but are flashing warning signs. XFJ is pointing firmly down and to the left, while XEJ's momentum has completely stalled out. This exhaustion suggests that the "inflation hedge" and "yield curve" trades are highly mature and vulnerable to distribution.
Consumer Discretionary (XDJ) & Real Estate (XPJ): The recent recovery attempts in the Improving quadrant are rolling over. Both tails have hooked downward and to the right, failing to cross the vertical axis as macroeconomic headwinds cap their upward mobility.

The Heavy Laggards

Info Tech (XIJ) & Health Care (XHJ): Tech remains in a bearish spiral deep in the Lagging quadrant, while Health Care has officially crossed down through the horizontal axis, confirming a transition from Improving to Lagging as distribution accelerates.
Materials (XMJ) & Resources (XJR): Despite their poor relative strength positioning in the bottom-left, the upward trajectory of these resource baskets is the most critical contrarian signal on the board. This sustained positive momentum curl suggests the aggressive liquidation phase is exhausted, and a structural base is being carved out.

Strategic Outlook

The momentum profile for March 30, 2026, demands a highly disciplined, quantitative approach. The broader market is shedding duration risk and cyclicality, leaving Utilities (XUJ) as the only true momentum leader. However, the early vector improvements in the heavy-hitting Materials (XMJ) sector provide a compelling setup for rotational traders looking to anticipate the next cycle.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.