Talking Technicals: 12 ASX charts to watch this week
Stocks like Iluka Resources, Strike Energy and Boral are trying to break out this week.
Source: Shutterstock
Mentioned
KEY POINTS
- The ASX 200 is on a three-day winning streak but is this the kind of strength investors should be selling into?
- Iluka, Strike Energy and Boral are stocks trying to break out on Monday
- Patriot Battery Metals and XRF Scientific are strong runners taking a breather. Can they set up for another breakout?
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
The ASX 200 is up almost 2% in the last three sessions. But you only have to look towards the left of the chart to be reminded about what happens around this 7,200 level. The rally brings the market more towards neutral territory but is this the kind of strength investors should be selling into?
ASX 200 chart (Source: Market Index
Sectors in Review
ASX 200 Discretionary Index is bouncing from March lows and the weekly 200-day moving average.
ASX 200 Discretionary Index weekly chart (Source: TradingView)
ASX 200 Healthcare Index aka CSL is breaking out to November 2021 levels.
ASX 200 Healthcare Index daily chart (Source: TradingView)
Charts of Interest: Large Caps
Iluka Resources (ASX: ILU) has held up relatively well over the past few weeks. Moved out on Monday but faced a bit of selling from session highs of 3.8% or $11.82.
Iluka daily chart (Source: TradingView)
Strike Energy (ASX: STX) found its footing around the 50-day moving average (green) following a ~30% rally in mid-April. The emerging WA-gas producer is taking shape again.
Strike Energy daily chart (Source: TradingView)
Boral (ASX: BLD) has rallied strongly from a six week base. The construction materials sector has been trending quiet strongly, including names like James Hardie and Adbri.
Boral daily chart (Source: TradingView)
Carsales (ASX: CAR) plays into the ongoing tech thematic. Price action remains choppy as it approaches $24.00. Remains in this elevated base after moving out in late April.
Carsales daily chart (Source: TradingView)
McMillan Shakespeare (ASX: MMS) another name that's in a six week base.
McMillan Shakespeare daily chart (Source: TradingView)
Charts of Interest: Mid-to-Small Caps
Musgrave Minerals (ASX: MGV) recently completed its Stage 1 PFS on 17 April for its Cue Gold Project. Recent price action demonstrates its first close above the 200-day moving average since May 2022 and first 'higher high' since October 2021.
The stock briefly moved out to 6-month highs on Monday, on the back more more than 3m volume (vs. 20-day average of ~420,000). Are we seeing a bit of a change of character for the goldie?
Musgrave Minerals daily chart (Source: TradingView)
92Energy (ASX: 92E) is among several uranium names that moved out lats week. Uranium prices have rallied to US$55 a pound, the highest in over one year after the US House committee approved bills to ban Russian uranium.
92Energy daily chart (Source: TradingView)
Patriot Battery Metals (ASX: PMT) broke out strongly in early May, rallying almost 45% to all-time highs by May 24. It's pulled back to the 20-day (red). So let's see if it can tighten up around these levels.
Patriot Battery Metals daily chart (Source: TradingView)
XRF Scientific (ASX: XRF) has been a powerful trender, up more than 110% in the past twelve months with only a few brief touches on the 50-day (green). It's starting to consolidate again around the 20-day, so let's see if it can form a bit more right hand side.
XRF Scientific daily chart (Source: TradingView)
