ASX breakouts

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Our breakout of the week is Breville Group Ltd (BRG) which has been testing resistance at 30 for the past 12 months. It finally broke out in July and this week reached a new high. Rising Trend Index troughs signal buying pressure. Retracement that respects the new support level at 30 would confirm the bull signal, offering a target of 361.

Breville Group (BRG)

Breville designs and distributes premium small kitchen appliances under the Breville brand in Australia, New Zealand, and North America, and the Sage brand in the UK and Europe.

Another healthy-looking breakout is small cap Dicker Data Ltd (DDR), added to the ASX 300 in 2020. The stock price has rocketed this week, breaking long-term resistance at 12. Rising trend index troughs again signal buying pressure. Hopefully we will see retracement to test the new support level. Respect of support would confirm the advance and offer a target of 152.

Dicker Data Ltd (DDR)

Dicker Data Ltd is engaged in the wholesale distribution of computer hardware, software, and related products. The company distributes a wide portfolio of products from leading technology vendors — including Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo, Microsoft, and other Tier 1 global brands — to more than 6,900 resellers across Australia and New Zealand. Dicker Data is housed in a new 29,000 sq m distribution center in Kurnell, Sydney.

Also worth a mention is lithium explorer Lake Resources NL (LKE) which broke through resistance at 50 cents. Respect of the new support level would offer a target of 75 cents3.

Lake Resources NL (LKE)

Lake Resources (LKE) has four exploration projects in Argentina. Lithium brine projects at Olaroz/Cauchari, Paso, and Kachi and a hard rock spodumene project at Catamarca. Flagship Kachi is at the pre-feasibility stage, where the company is trialing direct extraction using an ion-exchange process that pushes mineral-rich brine through a bead-filled module that selectively absorbs lithium. Once the beads are saturated, Lilac uses acid to flush out the lithium. Direct extraction is new technology, in contrast to the conventional large evaporation ponds employed by most lithium brine projects, and viability is as yet unproven in a full-scale project.


The above is only a technical view and does not take into account fundamental data like sales, operating margins, cash flows and debt levels. It is not a recommendation to buy or sell.


  1. Target of $36 for BRG is calculated as the trough at 24 projected above resistance at 30.
  2. Target of $15 for DDR is calculated as the trough at 9 projected above resistance at 12.
  3. Target of $0.75 for LKE is calculated as the trough at 0.25 projected above resistance at 0.50.

Quote for the Week

A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore.

~ John Hammerslough (Hat tip to Taylor Dart)


Colin Twiggs is director of The Patient Investor Pty Ltd, an Authorised Representative (no. 1256439) of MoneySherpa Pty Limited which holds Australian Financial Services Licence No. 451289.

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