March 2022 Technical Analysis
AGL Energy (ASX:AGL)
AGL is a stock we have been keeping a close eye on over the months. Its price action has been fairly predictable with the exception of some major news events swinging the price action all over the place. AGL really caught our eye in late 2021 for a possible long position after the consolidation between $5.10-$5.40 and subsequent breakout over $5.52 which we had notes as a buy signal. Since then, the share price has delivered a return of over 40%. AGL shares are now trading around $7.20 – right under recent resistance. An optimistic holder would love to see price action continue above this current resistance at $8 and retest after the breakthrough, preferably on a relatively lower volume. This outcome may eventuate if AGL provides positive news ASAP. However, If AGL shares fail to rally higher, the outcome points to a further decline under the $6.81 mark.
Gold
For years, the gold bugs have been scratching at the possibility of a breakout taking Gold to its August 2020 highs. With US core inflation rate for January at 6% (highest core inflation since 1983, 19 years) it’s hardly surprising that gold has had this sort of reaction. Commodity prices across the board have been on incredible rallies. Along with geopolitical tensions between Russia and Ukraine as well as the half-yearly high in CPI, could Gold be poised for a breakout, finally? From a technical standpoint, gold is positioned extremely well for a breakout and I would not be surprised if Gold climbs over $2000 US/OZ.
Fortescue Metals Group (ASX:FMG)
In the past 116 days. FMG share price has rallied over 50% on the back of a huge Iron Ore spot jump which saw the price go from $92 USD/Ton to over 145 USD/Ton. On the 18th January 2022, price action led to FMG shares trading under the established support line on relatively significant volume which caught our eyes. Subsequently, on the 21st January, there was a brief retest which positioned FMG back over the now resistance line and could have been considered a bull trap as the shares dwindled 11% lower over the following week before continuing their rally again, peaking at around $23 dollars before once again, hitting that ascending resistance line. Since the peak, FMG shares have declined 11% again.
Woodside Petroleum (ASX:WPL)
Similarly, to FMG, WPL has been unsurprisingly tracking its underlying commodity extremely closely. With oil up almost 30% this year alone, it’s no shock that WPL has increased almost the exact same amount. Disregarding the performance of the underlying commodity, WPL’s technical analysis alone is incredible. With multiple areas of support such as the ascending $27.50 area, $26.07, and $22, investors should feel optimistic. However, as price action continues to rally, the long-term resistance situated around the $30 should be noted as a key area. An analyst at JPM also stated that it expects oil prices to “overshoot” to $125 a barrel this year which would resemble a further increase of 34%.
Disclaimer
Advice in the Material is provided for the general information of readers and viewers (collectively referred to as "Readers") and does not have regard to any particular person's investment objectives, financial situation, or needs. Accordingly, no Reader should act on the basis of any information in the Material without properly considering its applicability to their financial circumstances. If not properly qualified to do this for themselves, Readers should seek professional advice.
Investing and trading involves risk of loss. Past results are not necessarily indicative of future results.
The decision to invest or trade is for the Reader alone. We expressly disclaim all and any liability to any person, with respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance upon the whole or any part of the Material.
