ThinkTechnical 12 August


A topical look at technical analysis factors for a number of key markets, and ASX stocks of interest for 12 August.



In today's ThinkTechnical we'll take a look at the technical picture for three stocks that have held up well in today's broader market decline. Each stands to benefit from structural changes to consumer behaviour resulting from the covid-19 pandemic. 

Afterpay Limited (APT) is arguably the leader in the buy now-pay later space. It, along with JB Hi-Fi Limited (JBH), stands to benefit from the recent surge in online spending. Similarly, Pointsbet Holdings Limited (PBH) stands to benefit from shifts in gaming towards online betting from more traditional channels.

 

Afterpay Limited (APT)

Afterpay Limited (APT) 12 Aug 2020

Afterpay Limited is in a well-defined short term uptrend, as evidenced by the 21 EMA located above the 34 EMA and with each EMA rising. The long term uptrend is also well-defined, as evidenced by the 144 EMA located above the 233 EMA and with each EMA rising.

Static resistance will be encountered at the 10 Aug 2020 high of 73.01, and then at the 10 Jul 2020 high of 76.62.

Static support will be encountered at the 04 Aug 2020 low of 65.53, which coincides with the 08 Jul 2020 low of 65.31.

Note that static support at today's low of 69.00 coincides with dynamic short term support expected to be encountered in the zone defined by the 21-34 EMAs, projected between 66.70 and 69.30. The price has been consistently rebounding higher out of the short term dynamic support zone since the short term uptrend began in April. This highlights the importance of this zone as a future area of potential dynamic short term support going forwards.

Beyond 76.62, APT is at all-time highs, and therefore targets are open ended. Note however, static resistance will likely be ecountered at the 80.00 round number.

Traders may wish to buy at the static and dynamic support zones with stops set below these levels. If this cannot be achieved, then traders may have to consider buying on a breach of 73.01.

 

JB Hi-Fi Limited (JBH)

JB Hi-Fi Limited (JBH) 12 Aug 2020

JB Hi-Fi Limited is in a well-defined short term uptrend, as evidenced by the 21 EMA located above the 34 EMA and with each EMA rising. The long term uptrend is also well-defined, as evidenced by the 144 EMA located above the 233 EMA and with each EMA rising.

Static resistance will be encountered at the 10 Feb 2020 high of 46.09, and also the 31 Jul 2020 high of 46.50.

Static support will be encountered at the 11 Aug 2020 low of 45.58, and also the 05 Aug 2020 low of 43.54.

The dynamic short term support zone is defined by the 21-34 EMAs, projected between 43.70 and 44.65. The price has been consistently rebounding higher out of the short term dynamic support zone since the short term uptrend began in April. This highlights the importance of this zone as a future area of potential dynamic short term support going forwards.

Beyond 46.50, JBH is at all-time highs, and therefore targets are open ended. Note however, static resistance will likely be ecountered at the 50.00 round number.

Traders may wish to buy at the static and dynamic support zones with stops set below these levels. If this cannot be achieved, then traders may have to consider buying on a breach of 46.50.

 

Pointsbet Holdings Limited (PBH)

Pointsbet Holdings Limited (PBH) 12 Aug 2020

Pointsbet Holdings Limited is in a well-defined short term uptrend, as evidenced by the 21 EMA located above the 34 EMA and with each EMA rising. The long term uptrend is also well-defined, as evidenced by the 144 EMA located above the 233 EMA and with each EMA rising.

Static resistance will be encountered at the 07 Aug 2020 high of 6.38, the 11 Jun 2020 high of 6.54, and then at the 11 Jun 2020 high of 7.92, which coincides with the 8.00 round number.

Static support will be encountered at the 29 Jul 2020 low of 5.55, the 08 Jul 2020 low of 5.34, and then at the 29 Jun 2020 low of 5.02.

Note that static support at the low of the last two trading sessions of 5.97 coincides with dynamic short term support expected to be encountered in the zone defined by the 21-34 EMAs, projected between 5.95 and 6.03. The price has been consistently rebounding higher out of the short term dynamic support zone since the short term uptrend began in April. This highlights the importance of this zone as a future area of potential dynamic short term support going forwards.

Targets are to the 11 Jun 2020 high of 7.92. Beyond 7.92, PBH is at all-time highs, and therefore targets are open ended. Note however, static resistance will likely be ecountered at the 10.00 round number.

Traders may wish to buy at the static and dynamic support zones with stops set below these levels. If this cannot be achieved, then traders may have to consider buying on a breach of 6.38.

 

Shortlisted Tickers

Not covered in today's ThinkTechnical, but worth further investigation:

Technology
AKP
NEA
Z1P

Resources
BHP
NIC

Building Products
BKW
BLD
JHX

Retail
SUL
WES
WOW

Energy
KAR

Financials
SDF



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