5 things to watch on the ASX 200 on Monday

It looks set to be a very red day for the ASX 200…

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a difficult week in a very positive fashion. The benchmark index charged 1.05% higher to 7,435 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to start the week deep in the red following a very poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 94 points or 1.25% lower this morning. On Wall Street, the Dow Jones fell 2.8%, the S&P 500 dropped 3.6%, and the Nasdaq sank 4.2%.

Oil prices fall

Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a subdued start to the week after oil prices dropped. According to Bloomberg, the WTI crude oil price fell 0.65% to US$104.69 a barrel and the Brent crude oil price dropped 0.1% to US$107.14 a barrel. Lockdowns in China have been weighing on demand.

ResMed share price is in the buy zone

The team at Goldman Sachs believes the ResMed Inc (ASX: RMD) share price weakness last week is a buying opportunity. This morning the broker retained its buy rating but trimmed its price target to $33.70. This implies potential upside of almost 16% for investors. While near term supply chain pressure remains acute, the long term opportunity remains.

Gold price rises

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price stormed higher on Friday night. According to CNBC, the spot gold price rose 1.1% to US$1,911.7 an ounce. Traders were buying gold after demand for safe haven assets increased.

PointsBet shares could be dirt cheap

The Pointsbet Holdings Ltd (ASX: PBH) share price could prove to be dirt cheap if Goldman Sachs has made the right call. Another note out of the broker reveals that its analysts have retained their buy rating with a $5.78 price target. This is almost double the current PointsBet share price. It said: “While sentiment in the sector remains challenging (high growth/long duration), operating results remain solid and the MT opportunity remains intact.”

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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