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, witnessed correction in the previous session and settled at 2622.48 with a week-to-date (WTD) gain of ~0.45 percent on February 10, 2022. Other major indices such as S&P 500 and NASDAQ Composite also showed upside movement for the week. On February 10, 2022, the S&P 500 index settled at 4504.08 with a WTD gain of ~0.08 percent, while NASDAQ Composite Index settled at 14185.641 with a WTD gain of ~0.62 percent.

The market sentiments turned negative after the Federal Reserve Bank of St. Louis' President James Bullard commented that he backed a full percentage point interest rates hike over the next three U.S. central bank policy meetings. However, a decrease in the US weekly initial jobless claims numbers to 223,000 from 239,000 (revised level) in the prior week limited the losses. Notably, the Consumer Price Index (CPI) increased 0.6% in January 2022 on a seasonally adjusted basis.

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 Cameco Corporation (NYSE: CCJ) and Vertiv Holdings, LLC (NYSE: VRT) for the next 2-4 weeks duration:

Cameco Corporation  

Cameco Corporation (NYSE: CCJ) is a uranium producer that deals in two segments: Uranium and Fuel services. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

CCJ has been sustaining above an upward sloping trend line for more than a year and recently started to move upside after taking the support of the same trend line, indicating the possibility of an uptrend hereon. The recent upside movement in the stock is backed by increasing volumes as well, further supporting a positive bias. Now the next major resistance level for the stock appears at USD 26.50 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 26.50 may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is trading at 52.40 levels, indicating a positive trend for the stock. The volumes also seem supportive of the upside movement. The CMP is above the trend-following indicator 50-period SMA, providing support for an upward direction; however, the 21-period SMA is above CMP which may act as a resistance level.

Financial Summary

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

General Recommendation

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

Vertiv Holdings, LLC

Vertiv Holdings, LLC (NYSE: VRT) is an electrical equipment and components company that provides critical digital infrastructure technologies and life cycle services. Noted below are the key price Indicators for the stock: 

Price Action Analysis (on the Weekly Chart)

VRT has started to move upside after testing a crucial support level of USD 19.00, indicating the possibility of an upward trend hereon. The price has also formed a Bullish Engulfing (bullish reversal) pattern on the weekly chart, further supporting a positive bias. Now the next major resistance level for the stock appears at USD 27.00 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 27.00 may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI (14-period) is recovering from the lower levels and trading at 44.63 levels, indicating a positive trend for the stock. The volumes also seem supportive of the upside movement. However, the trend-following indicators 21-period SMA and 50-period SMA are above the CMP and may act as the resistance levels.

Financial Summary 

Summary of the Key Financial Metrics for the past four years for Vertiv Holdings, LLC is as follows: 

General Recommendation

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