Phat squiggly lines: September 2021

Phat squiggly lines is where pro traders get a technical take on the stock markets – with Kieran Neeson, Opentrader's in-house trading guru.

Market overview

Markets have entered the seasonally weak periods of September/October with additional headwinds that have the potential to create the perfect storm for investors.

China’s largest property developer Evergrande is on the verge of defaulting, and US treasury yields are rising along with inflationary fears, both of which are good enough reasons to take profits at current levels and increase exposure to cash.

The ASX 200 has now retraced close to 6% since the new all-time high reached in mid-August and has recently broken its long-term uptrend, creating a bearish signal. It’s found support at 7200 points although a break of this level would likely see the market retest 7000 points – a key technical and psychological level traders will be watching closely should that scenario unfold.

Although sentiment is gloomy at present, buying the dip has been a great strategy to employ in recent years and a sharp move lower should have investors considering dusting off their buyer’s hat, as there will likely be some good bargains starting to emerge.

Phat squiggly lines chart for September 2021

Stocks to watch

BetMakers Technology Group (ASX:BET) is a wagering technology and data partner for some of the worlds most recognised and respected bookmakers and rights holders – and has rallied over 3,900% since mid-2019.

BET offer the most complete wholesale racing wagering solution in the world. Products and services available include:

  • The Global Tote (B2B pari-mutuel betting) licensed in Alderney, UK
  • Fixed odds and derivative racing prices
  • Racing data and full event life cycle
  • Trading tools such as odds comparison, price management and other market-driven software
  • Sportsbook mobile and desktop white-label platforms
  • Sportsbook widgets, iframes, and snippets

The stock has fallen victim to a broad-based selloff across the tech sector and has now retraced approximately 35% in three weeks. The technical picture is starting to look interesting, as the stock is close to being oversold and has pulled back to a strong level of support.

If BET can hold this level ($1.04), a bounceback to $1.15 in the coming days or weeks should eventuate. However, a break of this level would suggest a likely retest of its most recent low of $0.85.

Phat squiggly lines chart of BetMakers (ASX:BET) in September 2021

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