ASX200 outlook: top 3 stocks to watch this week

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

Market wrap: ASX200 consolidates above 7400 as sentiment remains cautious

Having pushed through key resistance at 7400, the Australia 200 has consolidated in recent days, seemingly as investors remain cautious amidst fears of weaker global growth and possible interest rate hikes from major central banks. Speculation is mounting that building global cost pressures will force central banks to tighten global monetary policy, with traders pricing in right now that the RBA will hike interest rates twice in 2022. That’s putting upward pressure on the AUD and Australian bond yields, which is weighing on the ASX, even despite robust risk appetite in global stock markets.

Top 3 ASX stocks to watch

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

1. Aristocrat Leisure (ALL)

2. Kogan Australia (KGN)

3. Appen (APX)

Aristocrat Leisure (ALL)

Aristocrat Leisure Ltd shares appear solidly in an uptrend, even despite a touch of weakness in recent weeks after the company announced an equity raise to fund the acquisition of UK gaming company Playtech. Momentum and the primary trend clearly remains higher for all right now, as the stock moves towards the top of its post-pandemic trend channel. The upper bound of that trend channel currently sits around $50.50 per share. The key technical level on the downside is around the 20-week MA and support at roughly $43.50.

Kogan Australia (KGN)

Kogan Australia Pty. Limiteds share price remains in a downtrend, as the pandemic online shopping boom fades and dims the outlook for the company’s profits. The grind lower in KGN shares comes despite a bumper set of sales figures in a recent trading update, with investors still cautious about the outlook for the business as consumer behaviour readjusts, with easing pandemic restrictions. The share price currently holding onto technical support at approximately $10.00 right now, which if broken might open a retest of support at around $8.70. A break above trendline resistance at roughly $11.00 could indicate a potential reversal for the stock.

Appen (APX)

Following the tech-boom at the end of 2020 and start of 2021, aAppen Limited shares have tracked progressively lower to recently trade at its lowest point since the end of 2018. While certainly in a clear downtrend, there are some technical indications APX stock could be on the cusp of a rebound, or a trend reversal. A bullish divergence has emerged on the weekly RSI, while price has broken out of a descending wedge. A push through the 20-week MA could open a rally towards $14.70 per share; while a push below price’s recent lower-low at around $8.40 would suggest the downtrend has further to run.

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