US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, started on a negative note and continued the momentum. It made a low of 2664.19 during the week and settled at 2665.68 with a week till date (WTD) loss of ~1.06 percent on September 09, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed negative movement for the week. On September 09, 2021, the S&P 500 index settled at 4493.28 with a WTD loss of ~0.93 percent, while NASDAQ Composite Index settled at 15248.25 with a WTD loss of ~0.75 percent.

The market reacted negatively despite improved numbers for JOLTS job openings and weekly unemployment claims. The US weekly unemployment claims further decreased to 310,000 from 345,000 (revised level) in the prior week and registered the lowest level since March 14, 2020.

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 Haemonetics Corp (NYSE: HAE) and Hims & Hers Health Inc (NYSE: HIMS) for the next 2-4 weeks duration:

Haemonetics Corp 

Haemonetics Corp (NYSE: HAE) is a healthcare company that supplies products required in the handling, processing, and analyzing of blood. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

HAE's prices formed a rounding formation at the lower levels, indicating the possibility of an upside reversal hereon. Prices are also sustaining above an upward sloping trendline, further supporting a positive stance.  Now the next major resistance level for the stock appears at USD 75.00 and prices may test this level in the short-term (2-4 weeks). A further breakout above USD 75.00 backed by volumes may extend buying into the stock to USD 85.00 level.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is trading at ~41.93 levels and recovering from lower levels, indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The CMP is above the 21-period SMA, further supporting an up move; however, the 50-period SMA is acting as the resistance level for the stock.

Financial Summary

Summary of the Key Financial Metrics for the past four years for Haemonetics Corp is as follows:

General Recommendation

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

Hims & Hers Health Inc

Hims & Hers Health Inc (NYSE: HIMS) is a health care platform that connects consumers and licensed healthcare professionals. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Weekly Chart)

HIMS’ prices started to move upside after the formation of a Bullish Harami (bullish reversal) candlestick pattern on the lower levels, indicating an upward direction for the stock. Recently prices have broken a downward sloping trend line on the upside, further supporting a positive stance. Now the next resistance level for the stock appears at USD 10.90 and it may test this level in the coming sessions. A further breakout above USD 10.90 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 ~44.34 levels and recovering from lower levels, indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. However, the CMP is below the 50-period SMA and 21-period SMA that are acting as the resistance level for the stock.

Financial Summary 

Summary of the Key Financial Metrics for the past two years for Hims & Hers Health Inc is as follows: 

General Recommendation

As per the above-mentioned price action and technical indicators analysis, we can conclude that Hims & Hers Health 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: