US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, started on a positive note and made a high of 2697.92 on March 29, 2022. However, all the gains were erased in the latter half of the week, and the index settled at 2631.73 with a week-to-date (WTD) loss of 0.21 percent on March 31, 2022. Other major indices such as S&P 500 and NASDAQ Composite showed mixed movement for the week. On March 31, 2022, the S&P 500 index settled at 4530.41 with a WTD loss of ~0.28 percent; however, the NASDAQ Composite Index settled at 14220.519 with a WTD gain of ~0.36 percent.

Initially, the market sentiments turned positive due to the release of the US Consumer Confidence numbers which rebounded slightly in March. However, an increase in the US initial jobless claims numbers to 202,000 from 188,000 (revised level) in the prior week restricted 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 Livent Corporation (NYSE: LTHM) and Ashford Hospitality Trust Inc (NYSE: AHT) for the next 2-4 weeks duration:

Livent Corporation 

Livent Corporation (NYSE: LTHM) is a fully integrated lithium company that manufactures lithium for use in a range of lithium products. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Daily Chart)

LTHM has broken a Double Bottom (bullish reversal) pattern on the upside on March 24, 2022 and since then has been hovering around the breakout level. The price is also sustaining above a downward sloping trend line breakout level for the past couple of weeks, further supporting a positive bias.  Now the next major resistance level for the stock appears at USD 30.00 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 30.00 may extend buying in the stock

Technical Indicators Analysis (On the daily Chart)

On the daily chart, RSI (14-period) is showing a reading of 61.91, indicating a positive momentum build-up. The volumes also seem supportive of the upside movement. Prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, further supporting an up move.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, we can conclude that Livent Corporation is looking technically well-placed on the chart, and we have a ‘Buy’ rating on the stock. Investment decision should be made depending on an investors’ appetite on 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.

Ashford Hospitality Trust Inc

Ashford Hospitality Trust Inc (NYSE: AHT) is a real estate investment trust (REIT) dealing in upscale hotels and upper-upscale full-service hotels. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Daily Chart)

AHT has broken a Symmetrical Triangle pattern on the upside on March 25, 2022 and since then has been trading above the breakout level, indicating upside movement hereon. The price has broken a crucial resistance level of USD 10.22, further supporting a positive bias.  Now the next major resistance level for the stock appears at USD 11.75 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 11.75 may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, RSI (14-period) is showing a reading of 64.69, indicating a momentum build-up. Prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, further supporting an up move.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, we can conclude Ashford Hospitality Trust Inc is looking technically well-placed on the chart, and we have a ‘Speculative Buy’ rating on the stock. Investment decision should be made depending on an investors’ 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.

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