Phat squiggly lines is where pro traders get a technical take on the stock markets – with Kieran Neeson, Opentrader's in-house trading guru.
The ASX 200 (XJO.ASX) managed had a strong day today, rallying over 1.1% after reserve bank governor Lowe indicated rates would be staying on hold for the remainder of 2022.
From a technical standpoint, the market entered into a correction late last week but has found some support around 6800. The 50-day moving average has just crossed over the 200-day moving average which is typically a bearish signal, so the next couple of days will be critical to see where the market goes in the short term.
1. Short-term resistance in place around recent high of 7620
2. Recent low and support
3. 50-day moving average crossing the 200-day moving average
Pilot Energy (PGY.ASX) is an Australian oil and gas producer that is leveraging its current assets to create clean energy projects with a focus on blue hydrogen and renewables such as solar and wind. The stock has great potential to be a leader in the hydrogen space and with many businesses now mandated to take action against reducing their carbon footprint, Pilot are well placed to capitalise on one of the fastest growing sectors in the market.
Technically, they look interesting at current levels after a decent move yesterday on good volume, so those looking for a slightly more speculative play may want to consider accumulating around here. Our preferred scenario would be for the stock to break above current resistance at $0.051 before taking a position which should result in a retest of recent highs at around $0.06, or approximately 15% higher.
1. Current resistance
2. Recent low and support
Two weeks ago, we put out a note on BET saying we believed the stock was undervalued and that investors could look to accumulate around $0.68. So far, our view has been correct, and the stock has since rallied 10% with the majority of that move coming happening yesterday.
BET recently reported $24m in cash recipients from customers which is approximately $90m annualised. It has a market cap of $550m and $110m in cash, meaning it's trading on a multiple of 4-5x revenue (less if you take its cash balance into account). It has no debt and has recently added the infamous Waterhouse racing family as a major shareholder who yesterday announced taking an 8% stake in the business.
From a technical standpoint, the stock needs to push up through current resistance to confirm a potential break of the strong downtrend it’s been in since May 2021. The coming days are extremely important for the short-term direction of the stock.
1. Potential break of long-term downtrend forming. Looking for a move up to $0.80 to confirm.
2. Recent low and support level
Hold on a sec! You should consider whether any advice here is right for you. We don’t accept any responsibility for the accuracy of any information, opinions, or predictions we’ve provided, and we certainly haven’t taken your personal financial situation into account. Just a heads-up.