US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, started on a marginally positive note and made a new lifetime high of 2599.68. However, the index witnessed correction from the higher levels in the latter part of the week and closed at 2572.35 with a week till date (WTD) loss of ~0.98 percent on July 08, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed negative movement during the week. On July 08, 2021, the S&P 500 index settled at 4320.82 with a WTD loss of ~0.72 percent, while NASDAQ Composite Index settled at 14559.79 with a WTD loss of ~0.54 percent.

An increase in the US weekly unemployment claims coupled with a decline in Service PMI acted as the major factors for the downward direction. As per the data released by the US Bureau of Labor Statistics, US weekly unemployment claims increased to 373,000 from 371,000 (revised level) in the prior week. The ISM Service PMI (data released by the Institute for Supply Management) for the month of June-21 registered 60.1 percent compared to 64 percent in May-21 and further acted as a catalyst for a bearish movement. 

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 Fiverr International Ltd (NYSE: FVRR) and ADC Therapeutics SA (NYSE: ADCT) for the next 2-4 weeks duration:

Fiverr International Ltd 

Fiverr International Ltd (NYSE: FVRR) is an Israel-based online marketplace. The company provides a platform for freelancers to provide services to customers worldwide. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

FVRR's price broke a falling wedge (bullish continuation) pattern on the upside on May 24, 2021 and has since then been trading above the breakout level, indicating an upside direction for the stock. Prices are continuously taking support from 21-period SMA and for the short-term (2-4 weeks), we may expect upside movement in the stock. Now the next major resistance level appears at USD 295.00, and prices may test that level in the coming sessions.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~56.08 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 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 Fiverr International Ltd is as follows:

General Recommendation:

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

ADC Therapeutics SA

ADC Therapeutics SA (NYSE: ADCT) is a Switzerland-based biotechnology company. It is engaged in the development of antibody-drug conjugates (ADCs), used in the treatment of both solid and hematological cancers. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

ADCT's price recovered from the lower levels after forming a positive divergence with the RSI (14-period) and currently, trading above a downward sloping trend line breakout, indicating an upward direction for the stock. Now the next major resistance level appears at USD 28.75, and prices may test that level in the short-term (2-4 weeks). A further breakout above USD 28.75 backed by volumes may extend buying in the stock to USD 30.60 level.

Technical Indicators Analysis (On the Weekly Chart)

On the Weekly chart, RSI is trading at ~46.17 levels and recovered from the lower levels, indicating a positive trend for the stock. The weekly volumes also seem supportive of an upside movement. The 21-period SMA is hovering around CMP and supporting an upside direction; however, prices are trading below 50-period SMA, acting as a resistance zone for the stock.

Financial Summary: 

Summary of the Key Financial Metrics for the past four years for ADC Therapeutics SA is as follows: 

General Recommendation:

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