8 ASX Stocks to Buy in Q2 for Strong Growth

If you’ve been waiting for the right time to buy stocks or thinking about rejigging your portfolio, quarter two could be the moment. Historically, Q2 is when major fund managers begin building positions ahead of the August earnings season, and seasonality data dating back to the 1980s confirms that April and July are two of the strongest months on the ASX. In the latest episode of the Australian Stock Market Show, Wealth Within founder Dale Gillham, along with analysts Filip Tortevski and Pedro Benales, break down 8 ASX stocks primed to run into the second half of 2026.

Their discussion covers a broad range of sectors, from defensive consumer staples to high-growth technology, precious metals to battery materials, all chosen because they are showing strong technical setups alongside supportive fundamentals.

With geopolitical tensions adding short-term volatility and the commodities boom continuing to underpin the Australian market, Q2 2026 offers a rare alignment of opportunity for investors who can look past the noise. As Australia’s leading provider of share trading education, Wealth Within’s approach is grounded in disciplined technical analysis, pattern recognition, and focusing on the bigger picture rather than the daily headlines.

Why Quarter Two Is a Critical Time to Build a Portfolio

Quarter two brings together several powerful tailwinds that historically drive strong returns on the ASX. The dust has settled from the February earnings season, giving investors clarity on how companies have responded to their most recent results. Fund managers are actively building positions for the next earnings cycle in August, creating sustained buying pressure across quality names. And dividend flows from the February reporting period are being redeployed back into the market.

Dale emphasised that the biggest mistake investors make right now is focusing too closely on the short-term noise of Trump tweets, tariffs, and daily volatility. The analogy used was putting your hand in front of your face; that’s all you see, and you miss the bigger picture entirely. Real traders pull back and look at the long-term trend, which is exactly what the following eight stocks demonstrate. For beginners wanting to understand how to read these longer-term setups, Wealth Within’s Short Course in Share Trading provides the foundational strategies for identifying profitable entry points.

Stock Spotlight #1: Macquarie Group

Macquarie Group is Australia’s leading merchant bank, and unlike the big four retail banks, it operates across markets, infrastructure, and asset management, making it a direct beneficiary of volatility. Filip highlighted that the most recent correction in Macquarie looks very similar to the COVID-era pullback, which is a sharp move triggered by a specific catalyst (this time oil prices and tariffs) rather than a broken long-term trend.

The critical level to watch is $190, which Macquarie has held firmly during the recent sell-off. If the stock can break through $222 and sustain above it, Filip sees a clear path toward the $240 level. Despite the geopolitical turmoil, Macquarie’s long-term trend remains intact, and it is one of the stocks favoured heading into the next reporting season.

Stock Spotlight #2: Coles Group

Coles Group is a classic defensive play, and Pedro described it as looking prime to take off. Consumer staples like Coles typically outperform in uncertain environments because they have the pricing power to pass on inflation directly to consumers. During COVID, Coles rallied 72% from its lows, demonstrating exactly how these stocks behave in times of global stress.

On the chart, Coles has a clear pattern: it consolidates sideways, then breaks out, then consolidates again. Each breakout in 2024 and 2025 led to further upside. The current correction of nearly 20% is larger than previous consolidations, but the stock is already breaking out. The key level to watch is $22 because if Coles holds above that previous peak and continues higher, it is well positioned to resume its uptrend.

Stock Spotlight #3: Northern Star Resources

Northern Star Resources is the largest gold producer on the ASX, making it the logical vehicle for investors wanting gold exposure in uncertain times. After gold’s euphoric retail-driven rally (remember the queues outside Sydney gold shops?), the metal corrected sharply, taking Northern Star down approximately 46% from its highs.

Filip highlighted that the stock bounced off its long-term momentum line at $17, with a notable gap-up in April driven by strong buying volume. This is textbook behaviour as retail sells at the top, institutions buy at the bottom. The key support level to watch is $16. As long as Northern Star holds above this line and buyers continue to step in, the stock offers a compelling opportunity for investors wanting both gold exposure and a high-quality operator in a cyclical upswing.

Stock Spotlight #4: Nickel Industries

Nickel Industries was Pedro’s speculative top pick and offers leveraged exposure to the EV and industrial metals cycle. Nickel demand is forecast to double by 2040, and the company’s operational scale, combined with its cost advantages, positions it as a key materials growth play in the battery materials sector.

The chart shows a clean expansion phase from 2019 to 2022, a contraction phase into April 2025, and is now heading back up with a supportive momentum line. The critical resistance is the $1 psychological level. A break above $1 would attract significantly more institutional interest, while a break below $0.80 would signal further downside to around $0.70. This is a textbook pattern for students of pattern analysis, and the risk-reward is attractive for investors who understand how to manage a more volatile position. These principles are covered in depth in the nationally accredited Diploma of Share Trading and Investment, where students learn how to trade across the full range of market conditions.

Stock Spotlight #5: REA Group

REA Group, operator of realestate.com.au, has what Pedro described as a structural monopoly in Australian property listings with very high margins. The company benefits from housing shortage dynamics, pricing power over real estate agents, and earnings upgrades tied to property turnover.

The stock has fallen approximately 46% from its all-time high, which is almost identical to the 48% decline it experienced in 2022 before doubling in value. Pedro’s message was clear: if REA was currently trading at $250 today, investors would be kicking themselves for not buying at the 2023 low. This is the same opportunity presenting itself again. However, the stock is still in a downtrend and not yet ready, with the key breakout level to watch being $175. A confirmed break above $175 with strong volume would signal the start of the next uptrend and a potential 50%+ return from current levels.

Stock Spotlight #6: Technology One

Technology One is one of the ASX’s most reliable software growth stories, with recurring revenue, strong earnings history, and expected earnings growth of around 20%. Unlike capital-intensive hardware or data centre plays, software companies scale efficiently, making Technology One a relatively defensive tech exposure.

Filip highlighted that the stock has moved back to its long-term trend line and bounced exactly where buyers would be expected. Higher lows are being accepted, suggesting sellers are struggling to push the stock lower. The near-term resistance level is $32, which represents approximately 20% upside for short-term traders. With the ASX tech sector down over 40% from its highs and US Tech Stock PE ratios now under 20, there’s renewed fundamental interest in a sector that was out of favour just a few months ago.

Stock Spotlight #7: Wesfarmers

Wesfarmers, the conglomerate behind Bunnings and a diversified basket of retail, industrial, and chemical businesses, has a unique exposure that the market hasn’t fully recognised yet: its chemicals division includes fertiliser production. With fertiliser supplies disrupted by the closure of the Strait of Hormuz, Wesfarmers is well positioned to benefit as Australian agriculture looks for domestic supply.

On the chart, Wesfarmers has pulled back to the natural momentum line established from its 2022 low, and is approaching a previous all-time high support zone around $67–$68. The stock has fallen 24% so far compared to its 40% decline in the previous major correction, suggesting there may still be a little more downside risk. However, the combination of the fertiliser tailwind, diversified exposure, and a strong balance sheet makes it a compelling stock to start researching now for a rebound toward $90+.

Stock Spotlight #8: South32

South32 offers diversified exposure across multiple commodities, including aluminium, meaning it is not reliant on a single centralised bet. With the materials sector flying on the recent rebound and giants like BHP, Rio, and Fortescue offering second-chance entries, South32 is another compelling name worth watching.

The critical level on the chart is the $4.13–$4.20 region, which has been a major resistance point since 2018. After breaking above $4.40 and pulling back, the stock has now been picked up by buyers, marking the first time in history that prices are being accepted on a pullback above $4.20.

Filip called this out as particularly exciting: if $4.20 holds on the monthly chart and the stock takes out the March high, South32 could finally break to a new all-time high after years of consolidation. This was Filip’s favourite pick of the night because, as he put it, he loves it when stocks do something they’ve never done before.

Hot Stock Tip: NextDC

The week’s hot stock tip was NextDC, Australia’s leading data centre operator. The company recently secured a $1 billion hybrid funding deal fully backed by Canadian institutional investor La Caisse, strengthening its balance sheet and accelerating data centre expansion without diluting existing shareholders.

On the chart, the stock has pulled back to the critical $11 support level, a price zone it has bounced off repeatedly since 2020. The next major level above is $14, which was a previous all-time high and has now become support. If NextDC breaks through $14 with conviction and retests it, Pedro sees a clear path to $16 and potentially $18 by the end of the year. A more conservative entry would be waiting for a break above the downward momentum line near $12–$13. For advanced traders wanting to master the timing tools needed to execute these setups, the Advanced stock trading course covers professional-level pattern analysis and trade management strategies.

The Bigger Picture: Opportunity vs Risk

One of the most important themes from the discussion was the difference between seeing opportunity and seeing risk in the current market. Dale recalled that back in the early 2000s, he would take two phone calls in a row where one trader complained there was nothing to buy, while the next said they’d run out of money because there were too many opportunities. Same market, completely different perspective and that’s what determines who profits from volatile periods like Q2 2026.

The analysts agreed that right now there is a significant opportunity for investors who can look past Trump tweets, tariff headlines, and daily noise. Every stock profiled in this analysis is operating in a long-term uptrend, pulling back to key support, and showing signs of buyer interest. That is the exact setup disciplined investors look for. The key, as always, is having clear rules for entry, stop losses, and position sizing to manage the inherent risks of any trade. If you’re new to investing, start with our Stock Market for Beginners guide for essential steps to build your investing confidence.

Final Thoughts: Positioning for the Q2 Rally

Q2 2026 is shaping up as a rare alignment of seasonal strength, fund manager repositioning, and a commodities-led ASX market that continues to defy the geopolitical noise. The eight stocks profiled in this analysis span defensive consumer staples, high-growth technology, precious and base metals, battery materials, real estate platforms, and diversified conglomerates. They all share the common theme of strong long-term trends, pullbacks to key support levels, and clear technical levels that would confirm the next leg higher.

Macquarie offers leverage to volatility and the reporting season. Coles and Wesfarmers provide defensive exposure with near-term catalysts. Northern Star gives gold exposure at a discount. Nickel Industries is a speculative play on the battery materials cycle. REA Group is setting up as a potential 100%+ rebound. Technology One offers defensive software exposure. South32 is breaking structural resistance for the first time in history. And NextDC is the data centre hot pick with institutional backing.

With over two decades of experience guiding Australians toward financial independence, Wealth Within showcases the company’s mission and track record as Australia’s most trusted share trading educator, ready to help you build a profitable portfolio with confidence in any market condition.