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ASX200 outlook: top 3 stocks to watch this week

We analyse some of the most important things traders and investors should watch out for in the week ahead.

ASX200 dips on China growth and financial stability risks

It was another volatile week for the Australia 200, with the index falling 0.8% for the week. The local market found itself caught-up in the volatility that swept through global markets to begin the week, sparked by fears around the potential collapse of Chinese property developer Evergrande Property Services Group Limited and its possible knock-on effects to Chinese financial stability and economic growth. The mining sector proved the biggest drag on the ASX200 index, with iron ore prices coming under selling pressure on risks to global growth.

Top 3 ASX stocks to watch

Here are 3 stocks that have caught our eye and may be worth watching in the week ahead.

Northern Star Resources Ltd (NST)

Whitehaven Coal Ltd (WHC)

zipMoney Limited (Z1P)

Northern Star Resources

Despite general concerns about global growth and, at least at the outset of the week, a subsequent drop in global bond yields, gold prices fell throughout the trading week. The drop in the value of the yellow metal weighed on Aussie gold miners, even if the impacts were slightly ameliorated by an Australian Dollar weakened by risk-off sentiment. Northern Star Resources’ share price fell to two-year lows as investors reduced exposure to gold-mining stocks, to close below what was price support at roughly $8.80 per share. The technicals look quite poor for the stock now, with the trend and price momentum skewed to the downside. The next major level of long-term price support looks to currently sit at around $7.65 per share.

You can trade Northern Star Resources Ltd with IG by creating a trading account or log into your existing account to get started.

Whitehaven Coal (WHC)

Whitehaven Coal shares surged last week, as global coal prices jumped to a record high as energy demands spikes on what is an unfolding and worsening energy shortage globally. Whitehaven shares look to be forming a primary uptrend now, with the weekly RSI showing a stock that is technically overbought, but that that is not signalling yet a meaningful slowdown in momentum. WHC shares probably remain highly tied to the budding energy crisis now and any further upside in coal prices, and in the short-term, risk-reward appears skewed to the downside given the stock’s overbought technicals. A re-test of previous price resistance now support at around $2.50 may indicate whether the stock’s longer term uptrend remains in play.

You can trade Whitehaven Coal Ltd with IG by creating a trading account or log into your existing account to get started.

Z!P Company Limited (Z1P)

Z!P Company shares were amongst the outperformers on the ASX200 last week, as the company announced expansion plans, that included an acquisition of an Indian payments company. Following a soft 6-months after the buy-now-pay-later market frenzy at the beginning of the year, Z!P shares have been trending lower, as the mania that enveloped the sector fades. From a technical standpoint, Z!P’s price action looks bearish in the long run. A descending triangle has formed in the price, implying a looming break to the downside for the stock, with price support at around $4.90 the next key level to watch.

You can trade zipMoney Limited with IG by creating a trading account or log into your existing account to get started.

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This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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