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ASX200: three stocks to watch


ArvinIG

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We look at some of the most important stocks traders and investors should watch out for this week.

1647836229312.png
Source: Bloomberg
 
 

The ASX 200 participated in an uplift in global equity markets last week, with the index rising 3.3%. It was a broad-based rally. But beaten-up tech stocks led the charge, with energy and materials stocks pulling back as fears about the impact of the war in Ukraine on global energy and commodity markets cooled.

The week ahead will remain focused on macroeconomic risk. However, a handful of local news should also drive the market, including several major stocks going ex-dividend after last month’s reporting season.

Here we look at three stocks to watch in the week ahead.

Top three ASX stocks to watch

1. Commonwealth Bank of Australia (CBA)

Commonwealth Bank of Australia (CBA)
Source: IG

CBA shares will go ex-dividend on the 22nd of March, as the company pays out the $1.75 dividend it announced out of its earnings last month. Combined with a more favourable market backdrop, investors appear to be buying into the stock ahead of the dividend, with price making fresh YTD highs. The share price has run into some resistance at around $106 right now, which if broken may open a push towards record highs at just above $110. Technical support is around $103.40.

2. Star Entertainment Group (SGR)

Star Entertainment Group (SGR)
Source: IG

Investors offloaded Star Entertainment Group shares last week as an enquiry into the gaming business in New South Wales probed alleged breaches of anti-money laundering regulation. The fear here is of potentially significant fines, and possibly a loss of its gaming license, like what happened to Crown when it was proven to have engaged in similar misconduct. With momentum skewed to the downside, SGR shares remain in a downtrend with the next major level of resistance around $3.10 per share.

ZIP Company Limited (Z1P)

ZIP Company Limited (Z1P)
Source: IG

The global tech wreck, along with a collapse in buy-now-pay-later stocks locally, has seen Z!P shares fall towards post-pandemic lows with the stock down roughly 80% in the past year. While the company faces headwinds from higher interest rates and potentially weaker profits from increasing bad debts, the technicals point to a looming bounce for the stock. Although in a primary downtrend, the weekly RSI is heavily oversold, and the signal line is suggesting slowing downside momentum. A break of trendline resistance could see buyers drive a reversion in the stock, with the resistance at $2.70 the major level to watch in such an event.

Follow Kyle Rodda on Twitter @KyleR_IG
 
Kyle Rodda | Market Analyst, Australia
21 March 2022

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