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 its bullish movement. The index made a high of 2182.25 during the week and settled at 2122.52 with a week-to-date (WTD) gain of ~2.24 percent on October 20, 2022. Other major indices such as S&P 500 and NASDAQ Composite also witnessed a positive movement for the week. On October 20, 2022, the S&P 500 index settled at 3665.77 with a WTD gain of ~2.31 percent, while the NASDAQ Composite Index settled at 10614.84 with a WTD gain of ~2.84 percent.

As per the data released by the U.S. Department of Labor, the Unemployment Insurance Weekly Claims decreased to 214,000 from 226,000 (revised level) in the prior week and supported the indices. 

Having understood the US market performance over the week, taking cues from major global news, and based on technical analysis of the Russell 3000 index for the upcoming week, now let’s have a look at the one NASDAQ-listed stock to pick from the technical standpoint. Noted below recommendation is based on the entry price, target prices, and stop-loss for Perion Network Ltd. (NASDAQ: PERI) for the next 2-4 weeks duration: 

Perion Network Ltd.

Perion Network Ltd. (NASDAQ: PERI) is a technology company that provides online advertising solutions and search monetization to brands and publishers. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart)

PERI’s prices recently broke a downward sloping trendline by an upside and are trading above the breakout level from the past couple of weeks, indicating the possibility of upside momentum hereon. The trendline breakout is accompanied by increased volumes, further supporting a positive bias. Now the next major resistance level for the stock appears at USD 27.50, and prices may test this level in the short-term (2-4 weeks). A further movement above USD 27.50 may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, the leading indicator RSI (14-period) is moving in a positive zone and is showing a reading of 59.44. The volumes seem supportive of the next upside movement. The prices are trading above the trend-following indicators 21-period and 50-period SMA, further supporting the bullish momentum.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, Perion Network Ltd. is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decision should be made depending on an individual’s 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 recommendation is as follows:

Markets are trading in a highly volatile zone currently due to certain macro-economic and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Upcoming Major Global Economic Events

Market events occur on a day-to-day basis depending on the frequency of the data and generally include an update on employment, inflation, GDP, consumer sentiments, etc. Noted below are the upcoming week's major global economic events that could impact the Russell 3000 Index and stocks’ prices:

Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Note 1: Individuals can consider exiting from the stock if the Target Price or Stop loss mentioned as per the technical analysis has been achieved and subject to the factors discussed above. 

Note 2: How to Read the Charts?