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 post that consolidated with a positive bias for the entire week. It made a new lifetime high of 2647.69 during the week and settled at 2647.04 with a week till date (WTD) gain of ~0.44 percent on Aug 12, 2021.Other major indices such as S&P 500 and NASDAQ Composite showed mixed movement during the week. On Aug 12, 2021, the S&P 500 index settled at 4460.83 with a WTD gain of ~0.55 percent, while NASDAQ Composite Index settled at 14816.26 with a WTD loss of ~0.13 percent.

An ease in the inflation data and decline in weekly unemployment claims supported the indices to retain at higher levels. As per the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) in July increased 0.5 percent compare to 0.9 percent in June. The US weekly unemployment claims further declined to 375,000 from 387,000 (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 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 First Horizon Corporation (NYSE: FHN) and Anaplan Inc (NYSE: PLAN) for the next 2-4 weeks duration:

First Horizon Corporation 

First Horizon Corporation (NYSE: FHN) is a bank holding company. It provides financial services through its subsidiary, First Tennessee Bank National Association and deals in fixed income, regional banking, corporate and non-strategic banking. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

FHN's prices have started to move up after taking the support at the long-term downward sloping trend line at USD 15.00, indicating the possibility of an upward direction hereon. Now the next major resistance level for the stock appears at USD 19.45 and prices may test the level in the short-term (2-4 weeks).

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~49.54 levels and indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The CMP is above the 50-period SMA, providing support for the upward direction; however, 21-period SMA acts as a resistance level for the stock.

Financial Summary

Summary of the Key Financial Metrics for the past four years for First Horizon Corporation is as follows:

General Recommendation

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

Anaplan Inc

Anaplan Inc (NYSE: PLAN) is an IT services company dealing in cloud-based connected planning platform. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Weekly Chart)

PLAN's price broke a major falling wedge pattern on the upside on June 17, 2021 and has since then been trading above the upper band of the pattern, 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 67.00 and prices may test the level in the coming sessions. A further breakout above USD 67.00 backed by the volumes may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~50.85 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 SMA, providing support for an upward direction; however, 50-period SMA acts as a resistance level for the stock.

Financial Summary 

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

General Recommendation

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