Technical Analysis

Talking Technicals: 12 ASX charts to watch this week

Mon 05 Jun 23, 2:36pm (AEST)
Stock market graph, candlestick technical analysis
Source: Shutterstock

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?

XJO chart
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.

XDJ 2023-06-05 13-51-40
ASX 200 Discretionary Index weekly chart (Source: TradingView)

ASX 200 Healthcare Index aka CSL is breaking out to November 2021 levels.

XHJ 2023-06-05 13-53-01
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.

ILU 2023-06-05 13-57-55
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.

STX 2023-06-05 13-58-14
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.

BLD 2023-06-05 13-58-29
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.

CAR 2023-06-05 13-58-43
Carsales daily chart (Source: TradingView)

McMillan Shakespeare (ASX: MMS) another name that's in a six week base.

MMS 2023-06-05 13-59-20
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?

MGV 2023-06-05 14-07-19
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.

92E 2023-06-05 14-07-32
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.

PMT 2023-06-05 14-07-57
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 2023-06-05 14-08-13
XRF Scientific daily chart (Source: TradingView)


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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