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The local market closed lower on Friday but gained 0.2% for the week to notch out a fourth straight week of gains. The energy sector defied the broader market sell-off on Friday, boosted by an almost 4% rise for Woodside Energy Group.

New Hope Corporation (ASX:NHC) and Beach Energy (ASX:BPT) also jumped more than 3% on Friday as investors piled into energy stocks amid rising energy prices. On the Energy front, we will be keeping an eye on the sector this coming week following the passing of the Inflation Reduction Act in the US House over the weekend which includes US$369bn for energy security. On the losing front from Friday’s session, Lake Resources fell almost 13.5%, as some investors took profit from the company’s surge of 73% earlier in the week, while Novonix and Telix Pharmaceuticals also lost more than 8% and 7% respectively.

The most traded stocks by Bell Direct clients last week were Lake Resources (ASX:LKE), Core Lithium (ASX:CXO) and Orora (ASX:ORA).

All three key US market indices closed higher on Friday as investor beliefs that inflation may have reached its peak were strengthened on Thursday with inflation data coming in below analysts’ expectations. Consumer Discretionary stocks led the charge in the US on Friday with the sector adding more than 2.3% while Technology stocks were pushed higher by Meta jumping over 1% on reports of a new delivery partnership with DoorDash. The market rally extended into Europe on Friday with the Stoxx, FTSE and DAX each closing in the green as investors digested an array of economic data released including the UK economy contracting in the second quarter of 2022 as the country’s cost of living crisis worsened.

What to watch today:

• Following a strong session for the US to close out last week, the Australian market is set to open higher this morning.
• Reporting season remains the key focus of trading this week with Beach Energy (ASX:BPT), Bendigo and Adelaide Bank (ASX:BEN), Bluescope Steel (ASX:BSL), G.U.D Holdings (ASX:GUD), GPT Group (ASX:GPT) and tech giant JB Hi-Fi (ASX:JBH) releasing results today.
• Taking a look at the commodities, Crude Oil continues to decline from highs back in March on the back of OPEC lowering its demand forecast for the year ahead amid growing signs that a slowdown in global economic growth will curb oil demand. Iron Ore is down almost half a percent, and natural gas prices have pulled back from a high on Friday, but Gold is trading just under 1% higher.
• This week, we will be keeping a close eye on several economic data releases including the RBA’s meeting minutes for August, Australia’s Wage Price Index, US retail sales and Australia’s unemployment rate later in the week.

Trading Ideas:

• Trading Central have identified a bearish signal on Northern Star Resources (ASX:NST) through a ‘Continuation Wedge’ chart pattern forming, indicating the stock price may fall from the close range of $8.26 to $6.60-$6.90. The pattern formed over a 17-day period which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
• Trading Central has also identified a bullish signal on Clean Seas Seafood (ASX:CSS) on the basis of a ‘bottom triangle’ chart pattern forming over 33-days, indicating the stock price may rise from the close of 60 cents per share to between 73 – 77 cents per share. The chart pattern forming over 33-days is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.