US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market, started on a negative note and made a low of 2412.24 on April 27, 2022. However, the index recovered in the previous session and settled at 2482.03 with a week-to-date (WTD) gain of ~0.22 percent on April 28, 2022. Other major indices such as S&P 500 and NASDAQ Composite showed marginally positive movement for the week. On April 28, 2022, the S&P 500 index settled at 4287.50 with a WTD gain of ~0.37 percent and the NASDAQ Composite Index settled at 12871.528 with a WTD gain of ~0.25 percent.

The market sentiments turned positive after the release of initial jobless claims which declined to 180,000 from 185,000 (revised level) in the prior week, supporting the indices. However, a decrease in the gross domestic product (GDP) at an annual rate of 1.4% in Q1 of 2022 limited the gains.

Having understood the US market performance over the week, taking cues from major global news, and based on our technical analysis of the Russell 3000 index for the upcoming week, now let us have a look at the two NYSE/ NASDAQ listed stock picks from the technical standpoint. Noted below are our recommendations based on generic insights, entry price, target prices, and stop-loss for Agnico Eagle Mines Limited (NYSE: AEM) and Piedmont Lithium Inc. (NASDAQ: PLL) for the next 2-4 weeks duration:

Agnico Eagle Mines Limited 

Agnico Eagle Mines Limited (NYSE: AEM) is a Canada-based mining company engaged in producing precious metals. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart)

AEM has been sustaining above a downward sloping trend line for the past couple of weeks and recently started to move upward after taking the support of the same trend line, indicating the possibility of an upside movement hereon. Now the next major resistance level for the stock appears at USD 67.20 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 67.20 may extend buying in the stock.  

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is hovering around the mid-point and showing a reading of 48.18. Prices are trading above the trend-following indicator 21-period SMA, supporting an up-move; however, the 50-period SMA is above CMP which may act as a resistance level for the stock.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, we can conclude that Agnico Eagle Mines Limited is looking technically well-placed on the chart, and we have a ‘Buy’ rating on the stock. Investment decisions should be made depending on an investor’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of our recommendation is as follows:

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Piedmont Lithium Inc.

Piedmont Lithium Inc. (NASDAQ: PLL) is a lithium company. engaged in the development of its Piedmont Lithium Project in North Carolina. Noted below are the key price Indicators for the stock: 

Price Action Analysis (on the Daily Chart)

PLL has recently tested crucial support of USD 64.36 and started to move upside, indicating the possibility of an upside movement hereon. Now the next major resistance level for the stock appears at USD 80.00 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 80.00 backed by volumes may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, RSI (14-period) is hovering around the mid-point and showing a reading of 49.44. Prices are trading above the trend-following indicator 50-period SMA, supporting an up-move; however, the 21-period SMA is above CMP which may act as a resistance level for the stock in the near term.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, we can conclude Piedmont Lithium Inc. is looking technically well-placed on the chart, and we have a ‘Speculative Buy’ rating on the stock. Investment decisions should be made depending on an investor’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of our recommendation is as follows:

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Upcoming Major Global Economic Events