Below are some trade ideas of which Oliver has conducted technical/charting analysis.
5G Networks (5GN:ASX)
Strong break out, with the stock up 23.1% on Monday. Prices closed right at the highs of the day on good volumes, which signals strong demand for the stock. We have a target zone between $2.59 and $2.79, where traders should look to take at least some profits off the table, which could come as early as today. Stops on remaining positions should be lifted to just below the $2 level.
Archtis (AR9:ASX)
New Stock. This stock has attracted plenty of interest of late given the Federal’s Gov’t recent focus on cyber security. Despite strong gains already over the past few months, it appears a triangle consolidation pattern is now forming. Aggressive traders could look to buy an initial position at market in the $0.45 to $0.50 region and look to add on a confirmed break out. We need a week or more price action before a clear break out level can be determined. For the more conservative, we would advise leaving this one on the watchlist for now, until the current pattern nears completion.
Atomo Diagnostics (AT1:ASX)
Holding the breakout level for now, but it is not looking overly convincing. It would be prudent to cut positions in size by selling some at market today, which should be at around the entry price, given the price is retesting prior resistance. There is a risk the price drops back into the broader range.
Openlearning (OLL:ASX)
Still in the base pattern for now. As discussed on Monday, ideally, we get further consolidation ahead of a break of the $0.27 to $0.28 region. This company (Open Learning), which offers online education, is in an interesting space at present, given the change to the tertiary education sector brought on by the Covid-19 pandemic.
Openpay (OPY:ASX)
The low from Monday was $4, with the price bouncing off this level to close at $4.32, demonstrating that prior resistance is now support. Short-term upward momentum has waned, meaning we may well see a week or two of sideways trading between new support at $4 and resistance at $4.87 – $5. Traders who are long need to prepare themselves for holding through a period of sideways trading, but as long as $4 holds, the outlook remains positive. The next major move is likely to come on a break of the $5 level. Such a move should offer a good opportunity to add to existing positions or initiate new positions for those not current holding.
Recce Pharmaceuticals (RCE:ASX)
Price appears to be breaking out, with a strong close at the highs of the session at $1.47, but we need to see follow through today. Targets around $1.80.
Splitit Payments (SPT:ASX)
Price is taking a breather, with a small inside day. No change to the outlook, still looks good for higher levels from here.
Sezzle (SZL:ASX)
Price is now consolidating following the sharp move up last week. Most of the easy gains have been had, so there may be better opportunities elsewhere for now. Stops should be lifted to just below $9.65, while resistance is now at $11.00 to $11.80. Any move back to this range would be an opportunity to sell any remaining positions at market.
Zip Co (Z1P:ASX)
The low from Monday was $8.65, right in the middle of the noted stop loss range between $8.70 and $8.60. A little like SZL, most of the easy gains are behind us, so we would recommend exiting remaining positions at market, or should you wish to hold, trail stop loss levels higher. We will cease coverage on this stock as of today.
