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 for most of the week. The index made a low of 2690.92 during the week and settled at 2722.79 with a week-to-date (WTD) loss of ~1.18 percent on December 16, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed bearish movement for the week. On December 16, 2021, the S&P 500 index settled at 4668.67 with a WTD loss of ~0.92 percent, while NASDAQ Composite Index settled at 15180.435 with a WTD loss of ~2.88 percent.

The market sentiments were affected due to negative economic data released during the week such as retail sales and initial jobless claims. As per the Bureau of Labor Statistics, the US weekly initial jobless claims numbers increased to 206,000 from 188,000 (revised level) in the prior week. The advance estimates of U.S. Retail and Food Services for Nov-21 is an increase of 0.3% compared to an increase of 1.8% in Oct-21, which acted as a catalyst for a bearish movement. However, the U.S. Federal Reserve's decision to keep the interest rates unchanged in the latest policy meet supported the indices at the lower levels.

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 Dun & Bradstreet Holdings Inc (NYSE: DNB) and Arbe Robotics Ltd (NASDAQ: ARBE) for the next 2-4 weeks duration:

Dun & Bradstreet Holdings Inc 

Dun & Bradstreet Holdings Inc. (NYSE: DNB) is a professional information service company that provides business decision data and analytics globally.  Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

DNB has broken a downward sloping trend line on the upside on November 04, 2021 and since then has been hovering around the breakout level, indicating the possibility of an upside reversal. The recent upside movement in the stock is backed by increasing volumes, further supporting a positive bias. Now the next major resistance level for the stock appears at USD 22.00 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 22.00 may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is recovering from lower levels and currently trading at 48.36, indicating a positive trend for the stock. The weekly volumes also seem supportive of the upside movement. The CMP is above the trend following indicator 21-period SMA, further supporting an up move.

Financial Summary

Summary of the Key Financial Metrics for the past four years for Dun & Bradstreet Holdings Inc is as follows:

General Recommendation

As per the above-mentioned price action and technical indicators analysis, we can conclude that Dun & Bradstreet Holdings 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:

Arbe Robotics Ltd

Arbe Robotics (NASDAQ: ARBE) is an aerospace & defence company, which develops and provides radars for the detection of small objects. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Daily Chart)

ARBE has broken a downward sloping trend line on the upside on December 08, 2021 and since then has been trading above the breakout level, indicating the possibility of an upside reversal. The recent upside movement in the stock is backed by increasing volumes, further supporting a positive bias. Now the next major resistance level for the stock appears at USD 13.00 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 13.00 may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, RSI (14-period) is trading at 56.05 levels, indicating a positive trend for the stock. The volumes also seem supportive of the upside movement. The CMP is above the trend following indicators 21-period SMA and 50-period SMA, further supporting an up move.

Financial Summary 

Summary of the Key Financial Metrics for the past two years for Arbe Robotics Ltd is as follows: 

General Recommendation

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