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 made a new lifetime high of ~2541.71 on June 10, 2021. Prices closed at 2535.75 on June 10, 2021, with a marginal week till date (WTD) gain of ~0.42 percent. Prices are sustaining above the resistance turned support level 2400 for the past 2 months, indicating the possibility of a further upward direction for the index. Other major indices S&P 500 and NASDAQ Composite also showed marginal upside movement during the week. On June 10, 2021, the S&P 500 settled at 4239.18 with a WTD gain of ~0.22 percent, while NASDAQ Composite Index settled at 14020.33 with WTD a gain of ~1.49 percent.

The CPI and Core CPI data released by the US Bureau of Labor Statistics supported the market sentiments. As per the data, the CPI in May on a seasonally adjusted basis increased 0.6 percent compared to 0.8 percent in April while the Core CPI rose 0.7 percent compared to 0.9 percent in April. The US weekly unemployment claims further declined to 376,000 from 385,000 in the prior week and acted as the catalyst for an upward direction.

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 Comstock Resources Inc (NYSE: CRK) and Imax Corp (NYSE: IMAX) for the next 2-4 weeks duration:

Comstock Resources Inc 

Comstock Resources Inc (NYSE: CRK) is a US-based energy company. The company is engaged in the acquisition, exploration, production, and development of oil and natural gas in East Texas/North Louisiana and South Texas (United States). Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

CRK's price broke the symmetrical triangle pattern on the  upside on June 01, 2021, and has since then been hovering around the breakout level. The breakout is supported by the sharp rise in the volumes, thereby higher market participation supporting an upside movement. Now the next major resistance level appears at USD 7.56, and prices may test that level in the short-term (2-4 weeks). A further breakout above USD 7.56 backed by volumes may extend buying in the stock till the next resistance level USD 8.48.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~58.19 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 Comstock Resources Inc is as follows:

General Recommendation:

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

Imax Corp

IMAX Corporation (NYSE: IMAX) is an entertainment technology company. The company manufacture and design IMAX cameras and projections systems. The company is also into film production, development, post-production, and distribution to IMAX-affiliated theaters across the world. Noted below are the key price Indicators for the stock: 

Price Action Analysis (on the Weekly Chart)

IMAX's price broke the downward sloping trend line on the upside on January 06, 2021, and has since then been trading above the breakout level, indicating an upward direction for the stock. Prices are continuously taking support from the 21-period SMA, further indicating a positive stance.  Now the next major resistance level appears at USD 26.10, and prices may test that level in the short-term (2-4 weeks). A further breakout above USD 26.10 backed by volumes may extend buying in the stock till the next resistance level USD 27.70.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~62.63 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 Imax Corp is as follows:

General Recommendation: