US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, started on a sharp bearish tone and made a low of 2512.41 on July 19, 2021. However, all its earlier losses were erased in the latter part of the week and the index settled at 2595.33 with a week till date (WTD) gain of ~1.19 percent on July 22, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed positive movement during the week. On July 22, 2021, the S&P 500 index settled at 4367.48 with a WTD gain of ~0.93 percent, while NASDAQ Composite Index settled at 14684.60 with a WTD gain of ~1.78 percent.

Global equities witnessed a sell-off during the initial part of the week on the concern of coronavirus' Delta variant spread which may impact the global economy adversely. An increase in the US weekly unemployment claims to 419,000 from 368,000 (revised level) in the prior week further limited the upside movement in 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 Qualcomm Inc (NASDAQ: QCOM) and Compass Inc (NYSE: COMP) for the next 2-4 weeks duration:

Qualcomm Inc 

Qualcomm Inc (NASDAQ: QCOM) is a wireless technology company specialized in offering third-generation (3G), fourth-generation (4G), and fifth-generation (5G) wireless technologies. The company engaged in the launch, development, and expansion of technologies. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

QCOM's prices are trading above a downward sloping trend line breakout for the past 1 month, indicating an upward direction for the stock. Prices are continuously sustaining above 21-period SMA and recently broke a major resistance level of USD 145.20, further supporting a positive stance. Now the next major resistance level for the stock appears at USD 168 and prices may test the level in the short-term (2-4 weeks).

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~56.74 levels and indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The CMP is above the 21-period and 50-period SMA, further providing support for an upward direction.

Financial Summary:

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

General Recommendation:

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

Compass Inc

Compass Inc (NYSE: COMP) is a real estate technology company that offers applications to simplify the entire real estate process. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Daily Chart)

COMP's prices are sustaining above a downward sloping trend line breakout for the past 2 months and supporting a positive direction for the stock. Prices recently started to move upside after taking the trend line support at USD 12.30 level and for the short-term (2-4 weeks), we may expect continuity of an upward movement. Now the next resistance level for the stock appears at USD 16.20 and prices may test the level in the coming sessions. A further breakout above USD 16.20 backed by the volumes may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, RSI is trading at ~56.05 levels and indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The CMP is above the 21-period and 50-period SMA, further providing support for an upward direction.

Financial Summary: 

Summary of the Key Financial Metrics for the past three years for Compass Inc is as follows: 

General Recommendation:

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