Australian investment research firm Wealth Within has identified seven ASX stocks that demonstrate resilience during seasonal market pullbacks, with analysts noting that September and October historically represent the market's worst performing months. The All-Ordinaries Index has rallied over 26% since April, positioning it within the typical range for a market correction according to historical patterns.
The analysis emphasizes that while volatility is expected during this period, it does not necessarily indicate a market crash. Stock selection, timing and risk management become particularly crucial during these windows of market weakness. The firm's approach focuses on stock-specific seasonality supported by technical confirmation rather than blanket sector bets, with financials and select consumer names often holding up better than other sectors during pullbacks.
TechnologyOne (ASX: TNE) appears on the watchlist as a quality tech compounder with historically resilient September to October behavior, typically consolidating sideways rather than breaking down. Qantas (ASX: QAN) shows a transformed post-COVID profile with well-defined rising trends, while Pro Medicus (ASX: PME) often uses September as a springboard into strong runs. HUB24 (ASX: HUB) maintains a strong trend though currently extended, with analysts preferring pullbacks to fill gaps around $92 before considering fresh entries.
ANZ Group (ASX: ANZ) represents the more defensive among major banks, still trading below its all-time high with approximately 11% upside potential to previous peaks. Xero (ASX: XRO) demonstrates strong October seasonality despite potential September softness, with key support levels around $155. Aristocrat Leisure (ASX: ALL) shows constructive structure near all-time highs with potential to join the "$100 club" following healthy pullbacks.
The analysis also addresses emerging market factors including new US de minimis rules that have prompted Australia Post to pause parcels to the US amid tariff changes lowering duty-free thresholds. These regulatory changes may reshape competitive dynamics, favoring larger players that can better absorb costs compared to small Australian e-commerce exporters. Investors are advised to review holdings with US parcel exposure and adjust risk accordingly.
Wealth Within recommends a rules-based approach combining seasonal patterns with price action confirmation, defining invalidation levels before entry, scaling position sizes according to volatility, and respecting technical patterns such as gaps and retests. The firm offers educational resources including their Trading courses and ASX video library for investors seeking to deepen their technical analysis skills.
