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; however, prices witnessed a downside movement in yesterday’s trading session. Prices settled at 2503.73 on June 03, 2021, with a marginal week till date (WTD) loss of ~0.31 percent. Prices are sustaining above the resistance turned support level 2400 since past 2 months, indicating the possibility of an upward direction for the index. Other major indices S&P 500 and NASDAQ Composite also showed marginal downside movement during the week. On June 03, 2021, the S&P 500 settled at 4192.85 with a WTD loss of ~0.27 percent, while NASDAQ Composite Index settled at 13614.51 with WTD a loss of ~0.98 percent.

As per the data released by the US Bureau of Labor Statistics, the US weekly unemployment claims further declined to 385,000 from 405,000 in the prior week and supported the indices. The improved Services PMI and Manufacturing PMI data released by the Institute for Supply Management restricted a major downside correction 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 listed stock picks from the technical standpoint. Noted below are our recommendations based on generic insights, entry price, target prices, and stop-loss for Piedmont Office Realty Trust Inc (NYSE: PDM) and Oceaneering International Inc (NYSE: OII) for the next 2-4 weeks duration: 

Piedmont Office Realty Trust Inc 

Piedmont Office Realty Trust, Inc. (NYSE: PDM) is a US-based real estate investment trust (REIT). The company’s business segment includes development, acquisition, re-development, management, and ownership of the commercial real estate properties located across the Eastern United States. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

PDM's stock price broke a downward sloping trend line by an upside at USD 18.92 level on June 01, 2021, indicating an upward direction for the stock. Prices also broke a major resistance level of USD 19.03 with the rise in the volumes, further supporting an upside movement. Now the next major resistance level appears at USD 23.55, and prices may test that level in the short-term (2-4 weeks).

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~65.18 levels and indicating a positive trend for the stock. The weekly volumes are showing an increasing trend and seems supportive of an upside movement. The CMP is above the 21-period and 50-period SMA with a positive crossover, further providing support for an upward direction.

Financial Summary:

Summary of the Key Financial Metrics for the past four years for Piedmont Office Realty Trust Inc is as follows:

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, we can conclude that Piedmont Office Realty Trust 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:

Oceaneering International Inc

Oceaneering International Inc. (NYSE: OII) is an oil field provider of engineered products and services mainly to the offshore oil and gas industry. The company’s business segment includes remotely operated vehicles (ROV), deep-water intervention, manned diving services, etc. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Weekly Chart)

OII's price broke a rising channel pattern by an upside on June 03, 2021, indicating an upward direction for the stock. Prices also broke a major resistance level of USD 16.00 with the rise in the volumes, thereby higher market participation supporting an upside movement. Now the next major resistance level appears at USD 21.30, and prices may test that level in the short-term (2-4 weeks).

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~70.14 levels and indicating a positive trend for the stock. The weekly volumes are showing an increasing trend and seems supportive of an upside movement. The CMP is above the 21-period and 50-period SMA with a positive crossover, further providing support for an upward direction.

Financial Summary: 

Summary of the Key Financial Metrics for the past four years for Oceaneering International Inc is as follows: 

General Recommendation: