ASX 200: three stocks to watch as of 16 January

ASX 200 overview

Last week the ASX 200 added 3% to close at 7328, for its highest weekly close since April 2022. After extending its rally on Monday morning, it is just ~3% below its all-time high of April 2022.

The rebound in the ASX 200 has been the result of China’s reopening, and a welcome cooling in US jobs and inflation data that will allow the Federal Reserve to downshift the pace of its rate-hiking cycle.

At a sector level, the ASX Materials Sector added 8.62% in the first two weeks of 2023 to close last week just 2% below its all-time highs, benefitting from stronger commodity prices and as heavyweight Materials Sector member BHP punched to all-time highs.

Elsewhere the ASX Financial Sector, added 2.79% last week but remains 5% below its all-time high. After the majority of Wall Street banks reported on Friday night beat earnings estimates, further upside in the ASX Financial sector seems likely.

The article below looks at three ASX Financial stocks that appear to have technical and macro support from the tailwinds noted above.

• CBA

CBA added 3.22% last week to close at $106.50. Its share price is up over 19.5% from its October $89.66 low. As viewed on the chart below, there is downtrend resistance coming in near $109.00 drawn from November 2021, a $110.19 high, which should provide initial resistance if tested.

However, if the share price of CBA can see a sustained break above resistance at $109.00/20, it opens up a test of the $110.19 high, before a possible test of $112.00.

CBA chart

• Westpac

The share price of Westpac climbed by 1.54% last week to close at $23.76. Its share price is up over 17.25% from its October 2022 $20.42 low. As viewed on the chart below, there is downtrend resistance coming in near $24.20 drawn from the June 2021, $27.12 high, which should provide initial resistance if tested.

However, if the share price of Westpac can see a sustained break above the downtrend resistance at $24.20 and then above the 2022 $24.67 high, it opens up a test of a thick layer of resistance between $26.10 and $27.10.

Westpac daily chart

• Macquarie

The share price of Macquarie added 3.37% last week to close at $178.27. Its share price is now up 20% from its October 2022 $149.51 low. As viewed on the chart below, there is resistance coming in near $181.20, the neckline of a possible inverted head and shoulders bottom.

If the share price of Macquarie can see a sustained break above the downtrend resistance at $181.20 and then the 2022 $24.67 high, it opens up a test of resistance between $190 and $192.00. Should the share price of Macquarie then clear resistance at $192.00ish, the next target is the $210/20 region coming from the 2022 highs.

Macquarie daily chart

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