ASX200 market update: 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.

Market wrap: volatility persists as ASX200 hits global wall of worry

The Australia 200 remains swept up in the anxiety plaguing global markets, as fears about weakening growth, persistent inflation and monetary policy tightening weighed on risk sentiment. The index is clung onto technical support around 7180 last week, but short-term momentum and risk overall appears skewed to the downside. Higher global bond yields have weighed on growth stocks especially, while one of the few positives for the market has been the energy sector, as oil prices surge on the unfolding global energy crunch. Also bucking the trend have been travel stocks, which we’ve decided to focus on here, which have spiked as investors grow more confident in the so-called ‘re-opening’ trade.

Top 3 ASX stocks to watch

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

Flight Centre Travel Group (FLT)

As we discussed here before, the technicals for fliFlight Centre Travel Group Ltd shares have been highly constructive. After announcements from Federal and State Governments of easing of domestic and international restrictions in the near future, along with last week’s breakthrough announcement from US pharma-giant Merck & Co Inc (All Sessions) regarding its successful antiviral Covid-19 pill, FLT shares have surged as hopes of freer travel have grown.

Price has broken above trend channel resistance now, with momentum accelerating to the upside. A very overbought reading on the weekly RSI suggests risk-reward is less attractive right now, however signs of a pullback are not yet evident. The next key level to watch on the upside looks to be around $28.20 per share.

Webjet (WEB)

As one might expect, the technicals for online travel agency Webjet Ltd are similar to that of Flight Centre, as investors jump back into travel retailers. Risk and reward based on the charts looks more attractive for WEB however, with the weekly RSI not yet into technically overbought territory, and price still trading within the stock’s post-pandemic trend channel. Traders might be watching for a similar break-out for WEB shares, which, if it materializes, opens up a rally to around $9.30 per share, where key resistance the 200-week moving average presently sit.

QANTAS Airways (QAN)

Qantas Airways Ltd shares have arguably been speculators’ favoured play on Australia’s reopening trade through the pandemic, and it’s perhaps for this reason that the charts suggest there might be less upside risk for the stock from here. The share price is roughly back to its pre-pandemic range, and is currently trading above the 20, 50, 100 and 200 weekly MAs. Although risk still appears skewed to the upside for the stock, especially as investors anticipate a post-pandemic travel boom. Key resistance currently sits around $6.10 per share, while support is at roughly $5.30, which may present the ideal opportunity to buy any dip in the stock.

Take your position on over 13,000 local and international shares via CFDs and trade it all seamlessly from the one account. Learn more about share CFDs with us or open an account to get started today.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Ready to put theory into practice?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.