US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, started on a marginal bearish tone and consolidated at higher levels for the entire week. The index settled at 2632.54 with a week till date (WTD) gain of ~0.79 percent on Aug 05, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed positive movement during the week. On Aug 05, 2021, the S&P 500 index settled at 4429.10 with a WTD gain of ~0.77 percent, while NASDAQ Composite Index settled at 14895.12 with a WTD gain of ~1.52 percent.

An improved services PMI data coupled with a decrease in US weekly unemployment claims supported the indices to retain at higher levels. As per the Institute for Supply Management, the Services PMI index in July-21 reached an all-time high of 64.1 compared to 60.1 in June-21. US weekly unemployment claims declined to 385,000 from 399,000 (revised level) in the prior week and supported the indices. However, a decrease in ADP Non-Farm Employment Change 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 MongoDB Inc (NASDAQ: MDB) and Cerevel Therapeutics Holdings Inc (NYSE: CERE) for the next 2-4 weeks duration:

MongoDB Inc 

MongoDB Inc (NASDAQ: MDB) is a technology company engaged in a general-purpose database platform. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

MDB's prices are trading in a rising channel formation for the past 4 months and recently started to move upside after taking support on the lower band of the pattern, indicating an upward direction for the stock. Now the next major resistance level for the stock appears at USD 429 and prices may test the level in the short-term (2-4 weeks). A further breakout above USD 429 may extend buying in the stock to USD 450 level.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~59.56 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 MongoDB Inc is as follows:

General Recommendation:

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

Cerevel Therapeutics Holdings Inc

Cerevel Therapeutics Holdings Inc (NASDAQ: CERE) is a biotechnology company engaged in clinical-stage investigational therapies and several preclinical compounds to treat neuroscience diseases. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Daily Chart)

CERE's price broke a major resistance level of USD 25.34 on the upside on July 28, 2021 and has since then been trading above the breakout level, indicating an upside direction for the stock. Prices are gaining upside momentum for the past couple of sessions and for the short-term (2-4 weeks), we may expect continuity of the same. Now the next resistance level for the stock appears at USD 31.09 and prices may test the level in the coming sessions. A further breakout above USD 31.09, backed by volumes, may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, RSI is trading at ~69.09 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 Cerevel Therapeutics Holdings Inc is as follows: 

General Recommendation:

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

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