Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

ASX200: The Long And Short Of It; NAN, GXY, REA, BPT

By City Index (Matt Simpson)Stock MarketsNov 21, 2019 12:28AM ET
ASX200: The Long And Short Of It; NAN, GXY, REA, BPT
By City Index (Matt Simpson)   |  Nov 21, 2019 12:28AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
ASX200 Sector Performance
ASX200 Sector Performance

  • Consumer stocks (staples and discretionary) are the leaders the past 5 sessions and trade just off their record highs.
  • All sectors remain in positive territory the past 52-weeks
    • However, its been the worst two sessions for the S&P/ASX 200 since the first week of October and the week is on track for a bearish outside candle. Given this occurred after failing to hold above resistance warns there could be further downside as the bull-trap plays out.
    Nonosonics Ltd Daily Chart
    Nonosonics Ltd Daily Chart

    Nanosonics Ltd (ASX:NAN): This healthcare stock remains in tip top shape and trade just beneath its record highs. Since the prior analysis, the Doji marked a higher low ahead of its run towards (and break to) record highs.

    Price action is now coiling above key support and holding above the 10-day eMA, to show momentum remains strong overall.

  • The bias is for a bullish break out of compression and for prior resistance around 7.10/16 to hold as support.
  • However, we could also look for the bullish trendline to act as support if a deeper retracement materialises.
  • As we’re at record high, an open upside target could be considered. Alternatively, bulls could target the monthly R and R3 pivot levels around 7.85 and 8.50 respectively (keep in mind thee levels will be revised from December).
  • Conversely, a break of the bullish trendline could provide bears with a countertrend move towards 6.50.
  • Galaxy Resources Ltd Daily Chart
    Galaxy Resources Ltd Daily Chart

    Galaxy Resources Ltd (ASX:GXY): We first flagged this stock on the 8th of October for its short potential. As it was trading near its lows after a bearish breakdown, we wanted it to retrace towards the resistance zone before heading lower. Since it traded above the invalidation point, it made its way to the backburner.

    Since then, prices have respected a bearish trendline and produced a pattern reminiscent to a triple top. Moreover, today’s price action has broken beneath key support and today’s high was capped by the 20-day eMA.

  • Bias remains bearish below 1.115, although traders can also use the bearish channel to confirm an invalidation point.
  • The triple top projects an initial target near the 0.875 lows.
  • There’s room to move to 0.815/30 but we’d expect profit taking / retracement around such levels.
  • REA Group Daily Chart
    REA Group Daily Chart

    Rea Group Ltd (ASX:REA): A simple counter-trend swing trade could be taking shape. Whilst technically within an uptrend, its retracements can be deep and we’ve now seen a pullback into a cluster of resistance, comprising of a swing low and Fibonacci levels. Yesterday’s small Doji followed by an elongated bearish candle today has formed an evening star reversal pattern at the said resistance zone.

  • Bears could look to fade into minor rallies below 104.85 and target the 200-day eMA around 97.
  • A break above 106 invalidates the near-term bearish bias and raises the potential for it having returned to its dominant, bullish trend.
  • Beach Energy Ltd Daily Chart
    Beach Energy Ltd Daily Chart

    Beach Energy Ltd (ASX:BPT): We’re keeping a close eye on how prices respond around 2.26. Whilst its within a longer-term uptrend (even if the major swings are far and wide) over the near-term, a break below 2.26 could see prices target the 200-day eMA around 2.14. Yet if prices rebound from support, it could try to revert to its longer-term bullish trend.

    Price Action Update

    Graincorp Ltd (ASX:GNC): We highlighted the importance of an 8-year support level the stock had failed to break multiple times, and its potential to bounce higher. Since the prior analysis prices have rallied over 14% and, if prior rebounds are anything to go by, could reach the 2035% bracket. Of course, the main issue from here is finding a low volatility entry but take note that current price action shows a bullish engulfing candle following a spinning to (so perhaps preparing for its next leg higher). But, if nothing else, this rebound demonstrates the potential for explosive moves around historical support and resistance levels.

    Original Post

    ASX200: The Long And Short Of It; NAN, GXY, REA, BPT

    Related Articles

    ASX200: The Long And Short Of It; NAN, GXY, REA, BPT

    Add a Comment

    Comment Guidelines

    We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

    •            Enrich the conversation, don’t trash it.

    •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

    •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

    • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
    • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
    • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
    • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
    • Only English comments will be allowed.

    Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

    Write your thoughts here
    Are you sure you want to delete this chart?
    Post also to:
    Replace the attached chart with a new chart ?
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
    Are you sure you want to delete this chart?
    Replace the attached chart with a new chart ?
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Add Chart to Comment
    Confirm Block

    Are you sure you want to block %USER_NAME%?

    By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

    %USER_NAME% was successfully added to your Block List

    Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

    Report this comment

    I feel that this comment is:

    Comment flagged

    Thank You!

    Your report has been sent to our moderators for review
    Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

    Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
    Continue with Google
    Sign up with Email