With this in mind, we look at three stocks we think are worth watching, given the themes currently driving the ASX200.
1. Oil Search Ltd (OSH)
Crude oil closed above $70.50 overnight as the impact from Hurricane Ida on the U.S. Gulf Coast continues to linger. Goldman Sachs and JP Morgan have both noted that Hurricane Ida has been unique in having a net bullish impact on U.S. and global oil balances.
Should crude oil prices continue to rally, Oil Search, which is trading almost 5% higher today, should also move higher.
A break and close above trend channel resistance near $4.00 would indicate further upside towards $4.30, before the March $4.68 high. On the downside, good support is viewed ahead of $3.60.
2. Oz Minerals (OZL)
Oz Minerals is a South Australian-based copper mining company whose share price has rallied 6% this week after news on Friday that Shanghai copper stocks fell to their lowest level in almost ten years.
Should the share price break and close above trend channel resistance near $25.10, it would open the way for the rally to retest the March high at $27.15. On the downside, near-term support is viewed at $24.00, before medium-term support at $22.50.
3. Fortescue Metal Group (FMG)
The share price of the iron ore mining giant has fallen more than 30% over the past two months, in line with the sharp selloff in the price of iron ore.
China, which buys 97% of all iron ore from Australia and Brazil, is cutting steel output to reduce carbon emissions at the same time as Brazil is increasing supply.
The share price of FMG is now approaching the 50% Fibonacci retracement at $17.40 of the rally from the $8.20 Covid crash low to the July $25.58 high.
Should signs of basing be viewed ahead of $17.40, a recovery of sorts may be in the offering. However, should the price break below $17.40ish, there is room for the decline to extend towards medium-term support $15.60/30 area.
Source Tradingview. The figures stated areas of September 14th, 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