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 continued the momentum for the most part of the week. It made a high of 2670.03 on Aug 25, 2021 and settled at 2649.81 with a week till date (WTD) gain of ~0.94 percent on Aug 26, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed positive movement for the week. On Aug 26, 2021, the S&P 500 index settled at 4470 with a WTD gain of ~0.64 percent, while NASDAQ Composite Index settled at 14945.81 with a WTD gain of ~1.57 percent.

The market reacted positively despite the release of negative economic data during the week. As per the IHS Markit, the Flash U.S. Manufacturing PMI and Flash U.S. Services Business Activity Index declined for Aug 2021 compared to July 2021. The US weekly unemployment claims increased to 353,000 from 349,000 (revised level) in the prior week. The Q2FY21 (Second Estimate) GDP increased at an annual rate of 6.6 percent, an increase by 0.1 percent point from the “advance” estimate released in July and supported the indices.

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 GreenSky Inc (NASDAQ: GSKY) and Atomera Incorporated (NASDAQ: ATOM) for the next 2-4 weeks duration:

GreenSky Inc 

GreenSky Inc (NASDAQ: GSKY) is a financial technology company. It provides financing solutions and payments technology to patients of healthcare providers. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

GSKY's prices are trading above the downward sloping trendline breakout level for the past 1 month, indicating an upward direction for the stock. The prices has also broken an important resistance level of USD 7.38 on the upside, suggesting additional positive stance. Now the next major resistance level for the stock appears at USD 9.35 and prices may test this level in the short-term (2-4 weeks). A further breakout above USD 9.35 backed by volumes may extend buying into the stock till USD 10.00 level.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is trading at ~69.34 levels and is indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The CMP is above the 50-period SMA and 21-period SMA with a positive crossover, further supporting the upward direction.

Financial Summary

Summary of the Key Financial Metrics for the past four years for GreenSky Inc is as follows:

General Recommendation

As per the above-mentioned price action and technical indicators analysis, we can conclude that GreenSky Inc 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:

Atomera Incorporated

Atomera Incorporated (NASDAQ: ATOM) is a technology company that deals in the commercialization, development, and licensing of processes and technologies for the semiconductor industry. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Weekly Chart)

ATOM's prices are sustaining above the downward sloping trendline breakout level for the past one month, indicating an upward direction for the stock. The price has recently started to move up after taking support at this downward sloping trendline, further indicating a positive stance. Now the next resistance level for the stock appears at USD 27.90 and prices may test this level in the coming sessions. A further breakout above USD 27.90 backed by volumes may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is trading at ~53.41 levels and is indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The CMP is above the 50-period SMA and 21-period SMA with a positive crossover, further supporting the upside direction.

Financial Summary 

Summary of the Key Financial Metrics for the past four years for Atomera Incorporated is as follows: 

General Recommendation

As per the above-mentioned price action and technical indicators analysis, we can conclude that Atomera Incorporated 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: