Australian stock markets may face headwinds in the wake of an accelerating pace of rate hikes in the major developed countries’ central banks despite a more conservative stance of the Reserve Bank of Australia. The benchmark index, ASX 200, dipped 0.64%, to 7480 at 2:30 pm local time, with potential retreating signals seen in some major stocks from a technical respective.
Core Lithium Ltd – Daily (a potential bearish break-out on the ascending trendline)
Key technical elements:
- A bearish engulfing has been formed on April 5, indicating the uptrend may have topped, with the pivotal support at the trendline, overlapping with the 10-day moving average at A$1.30 (Fib. 38.2%).
- Stochastic has formed a dead-cross, crossing down from the overbought territory, signaling the bear starts mounting.
- MACD also indicates the upside momentum is fading, with a potential dead-cross forming ahead.
Key price levels:
Supports: A$1.3, A$1.19
Resistances: A$1.44
BHP Group Ltd (ASX)-Daily (a potential continuation of pullbacks from the top of the descending channel)
Key technical elements:
- The three red candles (from March 30 to April 4) at the trend line resistance indicate a near-term top may have been formed.
- Stochastic points down from the overbought territory, signal the upside momentum is fading.
- MACD also sees pricing weakness may near with the moving averages flatting.
Key price levels:
Supports: A$50.42, A$49, A$47.24, A$45.02
Resistances: A$53.01
Whitehaven Coal-Daily (the uptrend is intact with a continuous upside momentum)
Key technical elements:
- The uptrend in MACD is intact with support at the 20-day moving average at A$4.15.
- Both Stochastic and RSI are pointing up, indicating the upside momentum builds up
- A potential bullish break-out at the near-term high at A$4.50.
Key price levels:
Supports: A$4.15, A$3.81
Resistances: A$4.50, A$4.75
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