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 most of the week. It made a high of 2698.84 during the week and now approaching the 2700 mark. The index settled at 2695.41 with a week till date (WTD) gain of ~0.65 percent on Sep 02, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed positive movement for the week. On Sep 02, 2021, the S&P 500 index settled at 4536.95 with a WTD gain of ~0.61 percent, while NASDAQ Composite Index settled at 15331.18 with a WTD gain of ~1.33 percent.

An improved Manufacturing PMI data coupled with a decline in weekly unemployment claims supported the indices. As per the Institute for Supply Management, the Manufacturing PMI for Aug-21 recorded at 59.9 percent as compared to 59.5 percent in Jul-2021. The US weekly unemployment claims further decreased to 340,000 from 354,000 (revised level) in the prior week and supported the positive direction. However, negative economic data released during the week such as Pending Home Sales, Chicago PMI, and CB Consumer Confidence limited the upside 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 Arcus Biosciences Inc (NYSE: RCUS) and CTI BioPharma Corp (NASDAQ: CTIC) for the next 2-4 weeks duration:

Arcus Biosciences Inc 

Arcus Biosciences Inc (NYSE: RCUS) is a biotechnology company that deals in developing cancer immunotherapy. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

RCUS's prices are trading above the downward sloping trendline breakout level for the past one and half months, indicating an upward direction for the stock. The price recently started to move upside after taking support at the same trend line and for the short-term, we can expect continuity in the upward direction. Now the next major resistance level for the stock appears at USD 39.20 and prices may test this level. A further breakout above USD 39.20, backed by volumes, may extend buying into the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is trading at ~56.89 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, further supporting the upward direction.

Financial Summary

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

General Recommendation

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

CTI BioPharma Corp

CTI BioPharma Corp (NASDAQ: CTIC) is a biopharmaceutical company engaged in the acquisition, development, and commercialization of blood-related cancers therapies for patients and healthcare providers. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Weekly Chart)

CTIC's prices have recently broken the downward sloping trend line on the upside and is hovering around the breakout level, indicating an upward direction for the stock. Now the next resistance level for the stock appears at USD 3.70 and this may get tested in the coming sessions. A further breakout above USD 3.70, 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 ~59.63 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, further supporting the upside direction.

Financial Summary 

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

General Recommendation

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