ThinkTechnical 10 July

There's plenty to bet on these days. If you wanted to, you could bet on any sport, old fashioned ball-type, horse, motor, or otherwise, or the new breed of e-sports. You can even bet on fantasy sports, that is, imaginary teams punters make up based upon stats of real sports people.

Confused? That's ok, I wouldn't want you to bet on any of those things anyway. But investing in the stocks that facilitate this betting, that's another story.

In today's ThinkTechnical, we'll look at two stocks leveraged to the 'newer' e-betting economy, in Pointsbet Holdings (PBH) and Betmakers Technology Group (BET), and one stalwart in Crown Resorts (CWN). CWN has a more traditional wagering earnings stream. 

As you will see, their charts are quite different. 
 

PBH is in well-defined long term uptrend as evidenced by correct order and rising 144-233 EMAs. The short term trend is less well-defined, as evidenced by correct order, but flat-to-only-slightly-rising 21-34 EMAs.

Since 22 June, the price has wavered in a 'W' shape cantered around the short term EMAs. Whilst it is bullish that the second swing low of the W is greater than the first, further confirmation is required to confidently say that this zone of dynamic support has truly been held.

The static resistance at the 7 July high of $6.23 is the key to confirming this. The price today is threatening to breach this level, and a close above it would be bullish.

Above $6.23, static resistance will be encountered at the 11 June high of $7.92, which coincides with the psychological $8 round number.

Static support will be encountered at the 8 July low at $5.34, and lower again at the 29 June low of $5.02 (which also coincides with the psychological $5 round number).

Given the recent price action, short term dynamic support between $5.75 - $5.90 probably cannot be relied upon completely. Overall however, the price action does look constructive for a move back to $7.92. This assumes of course that short term dynamic support holds, and the price can close above $6.23.

Traders may wish to buy on a close above $6.23 with a stop below static support.

Beyond $7.92, there are no targets until potentially the $10 psychological static resistance level.
 

BET is in well-defined short term uptrend as evidenced by correct order, and rising 21-34 EMAs, and a well-defined long term uptrend as evidenced by correct order and rising 144-233 EMAs.

Since the 10 June high of $0.51, the price has compressed into a downward pennant between $0.51 and the short term dynamic support zone.

Pullbacks within uptrends are healthy, and they give traders an opportunity to enter the uptrend at a better price, and at a more attractive reward-risk. This is because stops can be set beneath static and dynamic support which tends to be closer to the price than at the top of the uptrend range. 

Static support will be encountered at the 8 July low of $0.37, and more generally, within the dynamic support between $0.39 - $0.41.

Static resistance is clearly defined by $0.51, and this coincides with the psychological $0.50 round number. When support or resistance zones coincide, expect a stronger corresponding response from the market at that level.

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 will have to consider buying on a move above the 6 July high of $0.44.

Expect a pause at $0.51, but above this, targets are open-ended as BET would be trading at all-time highs.
 

The CWN is in stark contrast to its newer counterparts.

It is in well-defined short term downtrend as evidenced by correct order, and declining 21-34 EMAs, and a well-defined long term downtrend as evidenced by correct order and declining 144-233 EMAs.

Recent price action shows that CWN has failed to capitalise on short term dynamic support at the 21-34 EMAs provided since early May.

It decisively broke below this level on 25 June. It retested it with the 3 July high of $10.03 (note coincides with psychological $10 round number), and then failed to reassert the short term uptrend with a break below the 29 June low of $9.175.

This is decidedly bearish short term price action. When coupled with the obvious failure at the long term dynamic support zone defined by the 144-233 EMAs, lower prices are expected for CWN for the foreseeable future.

Static support will likely be encountered at the 17 April high of $8.69, which coincides approximately with the 13 May low of $8.80. Below this, short trades may target the 22 April low of $7.73, and then it is a free fall to the 24 March low of $5.84.

Static resistance will likely be encountered at $9.175, and further up, at the dynamic support zone sits between $9.50 - $9.60.

Traders may wish to sell at the static and dynamic support zones with stops set above these levels. If this cannot be achieved, then traders will have to consider selling on a close below $8.69.