Technical Analysis

Talking Technicals: 10 ASX charts to watch this week

Mon 22 May 23, 11:51am (AEST)
Technical analysis stock charts
Source: Shutterstock

Key Points

  • The ASX 200 continues to chop around the 7,200 mark
  • The ASX 200 Tech Index is up 8.2% in the last two weeks, buoyed by Nasdaq outperformance and AI hype
  • 6 large-to-mid cap charts of interest, including Aristocrat, Carsales and McMillian Shakespeare

Welcome to Talking Technicals, a weekly recap of the ASX 200, ASX sectors and some of the more interesting charts on the market.

The Big Picture

ASX 200 returns to this key 7,200 level. Index remains in this neutral but choppy state. Capital remains focused on certain pockets of the market like tech (US megacap outperformance and AI craze) and lithium (Chinese lithium spot prices stabilise and sector M&A).

XJO chart
ASX 200 daily chart (Source: TradingView)

Sectors in Review

S&P/ASX 200 Discretionary rejects 13-month highs.

ASX 200 Discretionary weekly chart (Source: TradingView)

S&P/ASX 200 Energy starting to move out. Do investors want to sell into strength given its track record of making lower highs since November 2022?

XEJ chart
ASX 200 Energy daily chart (Source: TradingView)

S&P/ASX 200 Info Tech breakout continues, up 8.2% in previous two weeks.

XIJ chart
ASX 200 Info Tech weekly chart (Source: TradingView)

Charts of Interest: Large Caps

Aristocrat (ASX: ALL) posted its half-year FY23 results on 18 May, where the stock closed 3.1% lower, up from an initial 6.6% selloff in early trade. The results were generally well-received by brokers, with Goldman reiterating a BUY rating with a $46.70 target price. Bit of a wild shakeout but weekly breakout remains intact.

ALL 2023-05-22 11-01-05
Aristocrat weekly chart (Source: TradingView)

Carsales (ASX: CAR) moved out in late April. Forming a higher base.

CAR 2023-05-22 11-00-00
Carsales daily chart (Source: TradingView)

McMillian Shakespeare (ASX: MMS) has seen very tight price action for the past 5 weeks. Volume spike on Wednesday, 12 April reflects Ethical Partners disposing 1.7 million shares or approximately half of its 5.25% stake in the company.

MMS 2023-05-22 11-00-39
McMillian Shakespeare daily chart (Source: TradingView)

Charts of Interest: Mid-to-Small Caps

A2B (ASX: A2B) has two notable gap ups:

  • 21 February: Half-year FY23 results

  • 30 March: Sale of its O-Riordan Street assets

For the latter, the company plans to return approximately $73 million back to shareholders as a fully franked dividend by the end of 2023. As far as technical are concerned, the stock continues to hold both the 20-day (red) and gap up levels. Volume is also tapering off.

A2B 2023-05-22 10-57-38
A2B daily chart (Source: TradingView)

Duratec (ASX: DUR) has been a strong trender since October 2022. It's rallied, with mostly shallow pullbacks to the 20-day and occasional rest along the 50-day (green). On 24 April, the stock gapped up 8.7% after upgrading its FY23 revenue guidance to $465-495m from $420-460m. It's trying to consolidate around the psychological $1.00 level and continues to hug the 20-day.

DUR 2023-05-22 10-58-42
Duratec daily chart (Source: TradingView)

Evergreen Lithium (ASX: EG1) is a recent listing with a $9.9 million cash balance as at 31 March 2023. The stock is consolidating around the low 40 cent mark after rallying to highs of 69 cents on 17 April.

EG1 2023-05-22 10-58-58
Evergreen Lithium daily chart (Source: TradingView)
This segment brings technical commentary on the ASX 200 and some of the more interesting charts in the market. These are not meant as recommendations and are for illustrative purposes only. Any discussion of past performance is for educational purposes only. Past performance is not a reliable indicator of future return. Always do your own research.


Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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