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 2802.12 on November 08, 2021. However, all its earlier gains were erased in the latter part of the week and the index settled at 2761.93 with a week till date (WTD) loss of ~1.03 percent on November 11, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed downside movement for the week. On November 11, 2021, the S&P 500 index settled at 4649.27 with a WTD loss of ~1.03 percent, while NASDAQ Composite Index settled at 15704.281 with a WTD loss of ~1.67 percent.

The market reacted negatively after the release of the higher inflation numbers. As per the Bureau of Labor Statistics, the Consumer Price Index (CPI) in October increased 0.9% (on a seasonally adjusted basis) after rising 0.4% in September. However, a further decline in US weekly initial jobless claims numbers to 267,000 from 271,000 (revised level) in the prior week limited the losses 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 ForgeRock Inc (NYSE: FORG) and ESSA Pharma Inc (NASDAQ: EPIX) for the next 2-4 weeks duration:

ForgeRock Inc 

ForgeRock Inc (NYSE: FORG) is a software company that deals in digital identity management. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Daily Chart) 

FORG has broken a downward sloping trend line on the upside on November 08, 2021, and since then has been trading above the breakout level, indicating the possibility of an upside reversal hereon. Now the next major resistance level for the stock appears at USD 39.75 and prices may test this level in the short-term (2-4 weeks). 

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, RSI (14-period) is trading at ~51.32 levels, indicating a positive trend for the stock. The daily volumes also seem supportive of the upside movement. The CMP is above the 21-period SMA, further supporting the up move.

Financial Summary

Summary of the Key Financial Metrics for the past two years for ForgeRock Inc is as follows:

General Recommendation

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

ESSA Pharma Inc

ESSA Pharma Inc (NASDAQ: EPIX) is a Canada-based biotechnology company that develops therapies for the treatment of castration-resistant prostate cancer (CRPC). Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Weekly Chart)

EPIX has broken a crucial resistance level of USD 10.44 on November 03, 2021 and since then has been hovering around the breakout level. Price has recently started to move upward after testing the same resistance turned support level, further supporting a positive bias. Now the next crucial resistance level for the stock appears at USD 13.00 and it may test this level in the short-term (2-4 weeks). A further movement above USD 13.00, backed by volumes, may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the Daily chart, RSI (14-period) is trading at ~65.29 levels, indicating a positive trend for the stock. The daily volumes also seem supportive of the upside movement. The CMP is above the trend following indicators 50-period SMA and 21-period SMA, further supporting an up move.

Financial Summary 

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

General Recommendation

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