Whether this is just a reprieve, or the start of a more substantial recovery remains to be seen. Should the ASX200 break and post a daily close back above the broken uptrend currently at 7340ish, it would be a vote for the latter and indicate that the correction is complete, and the uptrend has resumed.
Below are three Aussie stocks worth watching:
1. Orocobre (ORE)
Orocobre is a lithium producer whose share price has benefited in recent months from a lift in lithium’s price to multi-year highs due to the global move towards decarbonisation and tight supply. Yesterday the share price of Orocobre traded to a low of $8.19, almost 20% below its $10.08 high of last week as speculative money exited the space courtesy of the Evergrande scare and following a broker downgrade. Technically this week’s pullback is viewed as part of a corrective pullback. Providing technical support $8.20/10 area holds the expectation is for a retest and break of recent highs $10.00 area.
2. IDT (IDT)
IDT is a pharmaceutical company based in Melbourne and a solid contender to manufacture a COVID-19 mRNA vaccine for the Australian government. The share price of IDT initially rallied from .17c in March of this year when IDT issued a release, noting it was assessing the viability of producing a vaccine. In late August, it announced it was in a “state of readiness to produce a COVID-19 vaccine” that propelled the shares up to .755c. IDT is one of the only pharmaceutical companies in Australia with a sterile facility ready to produce a vaccine and probably the only one with spare capacity. For this reason and given the need for vaccines to be produced locally in the years to come, IDT is a company worth a second look.
3. QANTAS (QAN)
Australia’s national airline is currently enjoying the prospect of reopening as domestic vaccination rates continue to climb. Tourism Minister Dan Tehan said today that Australians will be able to travel aboard unrestricted by no later than Christmas once the vaccination rate in their respective states hits 80%. The Qantas stock price has rallied over 30% in the past three weeks from $4.20 to a high of $5.56, in anticipation of a travel boom from pent-up demand from a nation of people who love to travel. Dips should be well supported near $5.00 looking for a test of the November 2020, $5.79 high, before the next upside target at $6.20.
Source Tradingview. The figures stated areas of September 22nd, 2021. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation
