Two ASX Stocks Flashing Bullish Signals as Momentum and Volume Align

A Specialty Manufacturer Shows Technical Recovery

An Australian industrial technology company has moved above several key short-term indicators, signalling that buying interest has strengthened after a period of weakness.

The Setup

Amaero Inc. (ASX: 3DA) traded at A$0.275 on the latest close, gaining 5.77% on the session. The advance is noteworthy because price has moved decisively above its short-term exponential moving averages, reinforcing an improving near-term trend.

The 13-day EMA has crossed above the 21-day EMA—a configuration widely viewed as a bullish short-term signal. The stock now sits comfortably above both the 20-day EMA (A$0.248) and 50-day EMA (A$0.255), establishing a hierarchy of moving average support.

Most significantly, the stock has cleared the 100-day EMA near A$0.272. However, it remains just below the 200-day EMA around A$0.288, which represents the critical hurdle for confirming a broader trend reversal. A sustained move above this level would suggest that the long-term technical structure has genuinely shifted.

Momentum Without Excess

The relative strength index (RSI) stands at 57.9, well above the 50 neutral threshold. This indicates that upward momentum is outweighing selling pressure, yet the indicator remains comfortably below the 70 overbought zone. The recent advance has thus gained traction without reaching an extreme reading—a constructive feature.

Volume provides important confirmation. At 1.12 million shares with a relative volume of 1.57, trading activity sits well above average. For a small-cap stock, this level of participation suggests the move reflects genuine buying interest rather than thin-volume momentum.

The Bollinger Bands paint a similar picture. With price at A$0.275 trading toward the upper portion of the current volatility range, a sustained break above A$0.284 could signal further expansion.

The Technical Outlook

The intermediate-term picture appears genuinely improving, with the combination of positive moving average alignment, RSI momentum and above-average volume all supportive. The key test remains the A$0.288–A$0.290 resistance zone. A decisive move through this level would strengthen conviction that a longer-term bottom has formed.

A Mining Solutions Provider Traces a Classic Recovery

Orica Limited (ASX: ORI), the Australian mining solutions provider, has charted a disciplined recovery from its early-2024 peak—one that now displays genuine technical hallmarks of an uptrend.

After a severe correction that devastated the stock’s technical picture in early 2024, a potential double bottom formed in mid-March around AUD $16–17. This classical reversal pattern has held firm through subsequent price tests, establishing a psychological floor. Since that low, the stock has traced a series of higher lows and higher highs—the essential definition of an uptrend.

The recovery from April through June has been notably orderly. Rather than an explosive rally that exhausts buyers quickly, ORI has climbed methodically, with the moving averages acting as successive platforms of support. This grinding advance, whilst visually less dramatic than a parabolic surge, often proves considerably more durable.

Moving Averages Align

The 50-day and 200-day moving averages have recently converged and begun to separate in the stock’s favour. When shorter-term averages cross above longer-term ones—the “golden cross” in technical parlance—it signals a shift in momentum from sellers to buyers. ORI appears to be either at or very close to this inflection point.

The consistent positioning of price above both moving averages throughout the recovery phase reinforces this constructive view. Such alignment typically reflects institutional buying interest and suggests that key momentum participants view the setup positively.

Momentum Confirmation

The MACD indicator shows positive momentum that, whilst not at extreme levels, remains constructively oriented. The histogram stays in positive territory, confirming that upward momentum remains intact—a crucial requirement for any sustainable rally.

The RSI has operated in healthy zones, periodically touching overbought territory around 70 during sharper rallies but consistently resetting into more moderate levels during minor pullbacks. This pattern of measured strength, without capitulative overselling, points toward accumulation rather than indiscriminate buying.

Resistance Targets

The August consolidation between AUD $24–25 represents a key technical range. A decisive break above this level would target the February 2024 highs near AUD $27. More ambitiously, a sustained close above AUD $25.50 would open the door to testing January 2024’s peak around AUD $28–29. These are not arbitrary levels; they represent areas where previous sellers took profits and therefore serve as logical targets for renewed momentum.

One legitimate concern warrants attention: volume confirmation during the recovery phase. A sustained rally typically requires volume expansion, particularly at resistance levels. Thin-volume breakouts can reverse swiftly, so traders should watch closely as ORI approaches these technical targets.

From a purely technical standpoint, Orica Limited has transitioned from a badly damaged chart into one displaying genuine improvement. The recovery has been orderly, moving averages are aligning constructively, and momentum indicators are cooperating. For trend-following traders, the setup presents a textbook example of an uptrend establishing itself.

Whether this translates into fundamental outperformance depends on cyclical mining demand and operational execution—matters beyond the technician’s purview. But on the charts alone, the trajectory has shifted markedly in favour of the bulls.

Disclaimer: This analysis is for informational purposes only and should not be construed as financial advice. Past performance does not guarantee future results. All trading and investment strategies carry risk, including potential loss of capital. Consult a qualified financial adviser before making investment decisions.