ASX200: The long and short of it Beach Energy, Wesfarmer, Invocare

ASX 200 Sector Performance

It has been a volatile week for equities worldwide that were initially put off by another negative impression of the report. Although we have seen a small rebound on Trump's reassurance that "conversations are going well," the markets are not really buying it, so we need further clarification from China. Technically, the week ended with another bearish outdoor week (his 2nd over 3 weeks) and twice failed to close above the earlier all-time highs of 6875.50. It is therefore possible that, in our opinion, the market has reached the top without a breakthrough in trade negotiations. Although we would like to see a Santa Claus rally, it took until the last week of December in 2018 before it finally arrived. So let price promotion be your guide. We can see that all sectors have been closed in red this week, with consumer goods and information technology suffering the most. The energy index will largely guide the conclusion of this week's OPEC meeting early next week, so keep that in mind for stock trading within the sector. The consumer goods, healthcare and information technology sectors remain technically strong, although all sectors are in the background and at the mercy of global sentiment.

ASX200 executing shares within executive sectors

These stocks show trading in strong sectors while they also show strong, bullish trends. Although they are not fully eligible for immediate access, they are on our radar if they do so in the future.

Graphs below show technical arrangements of interest, but do not take into account sector or index or wider market.

Beach Energy (ASX 🙂 CFD / DFT: Despite poor returns from the energy sector this year, Beach Energy has been hit with a YTD of 85%. In the previous report, we had flagged it to monitor around the crucial level of 2.26, because a higher bounce would have confirmed the support level in line with the dominant trend. If that didn't work, it left the potential for a 12c counter-movement. Well, it chose the previous scenario and the 100-day eMA continues to support and prices consider a break higher.

Bias remains bullish above 2.25, although today's low at 2.38 can also be used to help with risk management as momentum if bullish on Monday. The original target is the 2.79 high. Remember today can have a direct impact on the energy sector r open on Monday.

Wesfarmers (ASX 🙂 CFD / DFT: This is one to check next week to see if the bullish momentum returns. The direct losses of 43 are worrying yet encouraging to see support around 40.22-40.43. Moreover, this zone coincides with the bullish trend line from the June low, making it a crucial level to look at.

Bulls can look for more evidence that a trough is being formed or consider access when the bullish momentum returns to suggest that the swing is low at 40.22. A break below 40.22 invalidates the bullish bias and can be a trend for counter-trend traders to consider whether the bullish trend line breaks.

Invocare (ASX 🙂 CFD / DFT: Prices remain below the bearish trend line and have now broken, around 13 this week, now pulled back to this key level. We may now see it turning into resistance, although traders might consider bearish setups while trading below the bearish trend line and / or the 13.50 high.

Price action update

Nanosonics Ltd (ASX 🙂 CFD / DFT (NAN): It cannot be denied, it has not broken the wrong path of compression ( down) and across the bullish trend line. It remains in a strong sector so can return, but has been temporarily removed from the watch list.

Galaxy Resources Ltd (ASX 🙂 CFD / DFT (GXY): The triple top goal around 0.875 has been reached and exceeded and prices are now up way to the lows around 0.815-0.830. The bearish channel remains intact, so the bias is for the final break low that paved the way for 0.675. However, we are pushing for cations around current levels, as the lows of September may demand gains and therefore a short-term recovery.

Newcrest Mining Ltd (ASX 🙂 CFD / DFT: 31.49 Resistance held and, after oscillating sideways for some time, is now on its way to the target around 28. Thursday's bearish engulfing candle suggests that bears I keep checking, so the short-term bias remains bearish while 29,93 resistance persists.

Rea Group Ltd (ASX 🙂 CFD / DFT: The retraction on this was deeper than we had wanted and traded above the 106 threshold we had annulled the idea before we finally fell. Price action is now messy and has been removed from the watch list for the time being.

Bank Of Queensland (ASX 🙂 CFD: This was marked on November 8 for a probable failure and did not disappoint. After a small consolidation, prices turned out low and bears drove it below the 8.02 target. Without signs of nasty reversal, it is vulnerable to falling back to its average, so it is currently on the back burner.

Disclaimer: The information and opinions contained in this report are for general information use only and are not intended as an offer or solicitation for the purchase or sale of a currency or CFD contract. All opinions and information in this report are subject to change without notice. This report has been prepared without taking into account the specific investment objectives, the financial situation and the needs of a particular recipient

References to historical price movements or levels are informative based on our analysis and we do not indicate or guarantee that such movements or levels are likely to occur again in the future. Although the information in this document has been obtained from sources that are considered reliable, the author cannot guarantee its accuracy or completeness, nor does the author accept any liability for direct, indirect or consequential damages that may arise from the confidence of a person on any such information or opinions.

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