US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, started on a flat note and thereafter traded with a negative bias for the entire week. It made a low of 2584.75 during the week and settled at 2601.55 with a week till date (WTD) loss of ~1.77 percent on Aug 19, 2021. Other major indices such as S&P 500 and NASDAQ Composite also showed negative movement for the week.On Aug 19, 2021, the S&P 500 index settled at 4405.80 with a WTD loss of ~1.39 percent, while NASDAQ Composite Index settled at 14541.79 with a WTD loss of ~1.90 percent.

The market reacted negatively after the indication by FOMC to start reducing asset purchases before the end of the year in the latest meeting minutes. The officials emphasized that there is no relationship between tapering and interest rate hikes. However, a decline in the US weekly unemployment claims to 348,000 from 377,000 (revised level) in the prior week restricted further downside movement 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/ 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 Qiagen NV (NYSE: QGEN) and Columbia Property Trust Inc (NYSE: CXP) for the next 2-4 weeks duration:

Qiagen NV 

Qiagen NV (NYSE: QGEN) is a holding company engaged in the transformation of biological samples into molecular insights. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart) 

QGEN's prices are sustaining above a downward sloping trend line for the past 1 month, indicating an upward direction for the stock. Prices are also getting support from the 50-period SMA on the weekly chart, further suggesting an upward trend. Now the next major resistance level for the stock appears at USD 60.00 and prices may test the level in the short-term (2-4 weeks). A further breakout above USD 60.00 backed by volumes may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~56.27 levels and is 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 and 21-Period SMA, further providing support for an upward direction.

Financial Summary:

Summary of the Key Financial Metrics for the past four years for Qiagen NV is as follows:

General Recommendation:

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

Columbia Property Trust Inc

Columbia Property Trust Inc. (NYSE: CXP) is a real estate investment trust (REIT) that deals in commercial real estate properties. Noted below are the key price Indicators for the stock:

Price Action Analysis (on the Weekly Chart)

CXP's price has witnessed a correction from the higher levels for the past 2 months and has recently started to move up after forming a Piercing Line (bullish reversal) candlestick pattern on the weekly chart, indicating an upside direction for the stock. The stock has also taken support at the downward sloping trend line, further indicating a positive stance. Now the next resistance level for the stock appears at USD 19.50 and this may get tested in the coming sessions. A further breakout above USD 19.50 backed by good volumes may extend buying in the stock till USD 20.15 level.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, RSI is trading at ~52.91 levels and is 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 up move; however, the 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 Columbia Property Trust Inc is as follows: 

General Recommendation:

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