Phat squiggly lines: Gimme a break


The market was crucified on Thursday as news broke Russia had engaged in conflict with the Ukraine sending the ASX 200 down almost 3%. From a technical standpoint, the market is now testing support at around 7,000 points. A break of this level would likely lead to a retest of the recent low made in January at around 6,760.

S&P/ASX 200 (XJO.ASX) analysis on Feb 25, 2022

1.  Short-term resistance in place around recent high of 7,325
2. Market testing support at around 7,000
3. Recent low and next support at 6,764

Markets likely feel a bit rattled as tensions in Europe remain elevated, so traders should be vigilant and remain active as opportunities are bound to be plentiful should we see a deeper correction occur.

Stock to watch: Syrah Resources (SYR.ASX)

Syrah Resources is one of Australia’s leading graphite and lithium producers that has recently inked a multimillion-dollar deal with Tesla to supply these materials to use for the manufacturing of electronic vehicles.

Syrah Resources Limited (SYR.ASX) analysis on Feb 25, 2022

Syrah Resources (SYR.ASX)
1.  Support at $1.38
2.  Initial profit target at next resistance point of $1.50
3.  Medium term target of $2.00

The stock has come back down to a really interesting level, and if it can hold current support around $1.38, a quick 10% move to the upside looks likely and retest of resistance at $1.50.

We’re bullish about the company targeting $2.00+ in the medium term and the technical picture is shaping up to support the fundamentals, so all-in-all it’s definitely worth keeping an eye on.

Stock to watch: Regis Resources (RRL.ASX)

Regis Resources is one of Australia’s top tier gold producers and recently upgraded their ore resource at their Tropicana tenement. Gold stocks typically perform well during times of heightened global instability and given what’s happening in the Ukraine, we feel gold and gold stocks will perform well for the foreseeable future.

Regis Resources (RRL.ASX)
1.  Stock currently getting tangled around the 50-day moving average (50 DMA)
2.  Support and bottom of trading range
3.  Top of trading range and the level the stock needs to break out of

From a technical standpoint, Regis has been consolidating for the better part of the last 12 months and is getting tangled around the 50-day moving average. The longer stock a manages to hold support and trade in its current trading range, the more likely a potential break to the upside will be accompanied with a bit of gusto, so we’re watching the stock closely and are looking for a break above $2.10 which would trigger a buy.

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

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.