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 the most part of the week. It made a high of 2631.18 on Oct 07, 2021 and settled at 2614.30 with a week till date (WTD) gain of ~0.94 percent on Oct 07, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed positive movement for the week. On Oct 07, 2021, the S&P 500 index settled at 4,399.76 with a WTD gain of ~0.98 percent, while NASDAQ Composite Index settled at 14654.01 with a WTD gain of ~0.60 percent.

The market reacted positively over the ADP Non-Farm Employment Change data which has increased by 568,000 in September compared to August 2021. Also, the US weekly unemployment claims has decreased to 326,000 from 362,000 (revised level) in the prior week, which also provide boost to the overall US 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 Rayonier Advanced Materials Inc. (NYSE: RYAM) and Ondas Holdings Inc. (NASDAQ: ONDS) for the next 2-4 weeks’ duration:

Rayonier Advanced Materials Inc. 

Rayonier Advanced Materials Inc. (NYSE: RYAM) is a cellulose-based technology company headquartered in Florida, United States. The company provides cellulose specialties, a natural polymer used in the production of LCD displays, filters, fibers etc. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

RYAM's prices recently provide the symmetrical triangle breakout, and the prices are sustaining above the breakout point for the past two weeks, indicating an upward direction for the stock. Price has also moved up after a heavy consolidation which also supports the bullish stance. Now the next major resistance level for the stock appears at USD 8.89 and prices may test the level in the short-term (2-4 weeks). A further breakout above USD 8.89 backed by the volumes may extend buying in the stock to USD 9.87 level.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is trading at ~54.42 levels and indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The CMP is trading 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 Rayonier Advanced Materials Inc. is as follows:

General Recommendation

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

Ondas Holdings Inc.

Ondas Holdings Inc. (Nasdaq: ONDS) is a developer of private licensed wireless data networks. The company is involved in designing, manufacturing, and supporting FullMAX, a company’s wireless radio systems for secure business-to-business networks. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Weekly Chart)

ONDS' prices are sustaining above a downward sloping trend breakout level for the past one week, indicating an upward direction for the stock. Price has recently started to move up after making a triple bottom pattern on the weekly chart, further supporting our positive stance. Now the next resistance level for the stock appears at USD 11.75 and it may test this level in the coming sessions. A further breakout above USD 11.75, backed by the volumes, may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is trading at ~61.40 levels and indicating a positive trend for the stock. The sharp surge in weekly volumes also seem supportive of the upside movement. The CMP is above the 50-period SMA and 21-period SMA, further supporting the up move.

Financial Summary 

Summary of the Key Financial Metrics for the past four years for Ondas Holdings Inc. is as follows:

General Recommendation

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