US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, started on a negative note; however, it gained in the latter half of the week. The index made a high of 2370.48 during the week and settled at 2357.30 with a week-to-date (WTD) gain of ~1.28 percent on December 01, 2022. Other major indices, such as S&P 500 and NASDAQ Composite, also witnessed positive movement for the week. On December 01, 2022, the S&P 500 index settled at 4076.57 with a WTD gain of ~1.25 percent, while the NASDAQ Composite Index settled at 11482.45 with a WTD gain of ~2.28 percent.

The market rebounded after Federal Reserve Chair Jerome Powell indication about the slower rate hikes in the latest speech. A decrease in the US Unemployment Insurance Weekly Claims numbers to 225,000 from 241,000 in the prior week further supported the indices. 

Having understood the US market performance over the week, taking cues from major global news, and based on technical analysis of the Russell 3000 index for the upcoming week, now let’s have a look at the two NASDAQ-listed stocks to pick from the technical standpoint. Noted below recommendations are based on the entry price, target prices, and stop-loss for Cimpress PLC (NASDAQ: CMPR) and Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) for the next 2-4 weeks duration: 

Cimpress PLC

Cimpress PLC (NASDAQ: CMPR) is an Ireland-based company that involves in the mass customization of printing and related products. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Daily Chart)

CMPR's prices witnessed the breakout of an inverse head and shoulders (bullish reversal) pattern's neckline and are trading above the breakout zone, indicating the possibility of an upside reversal hereon. The neckline breakout is supported by an increase in the volumes, further supporting a positive bias. Now the next major resistance level for the stock appears at USD 37.00, and prices may test this level in the short-term (2-4 weeks). A further movement above USD 37.00 may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, the leading indicator RSI (14-period) is moving in a positive zone and showing a reading of 66.11. The volumes seem supportive of the next upside movement. The prices are trading above the trend-following indicators 21-period and 50-period SMA, which may act as the support levels in the near term.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, Cimpress PLC is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decision should be made depending on an individual’s 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 recommendation is as follows:

Hydrofarm Holdings Group, Inc.

Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) is a US-based company that distributes and manufactures controlled environment agriculture equipment. Noted below are the key price indicators for the stock:

Price Action Analysis (on the daily Chart)

HYFM’s prices recently broke a downward sloping trendline by an upside and are sustaining above the breakout level, indicating the possibility of further upside movement. The trendline breakout is supported by the increase in the volumes, further supporting a positive bias. Now the next major resistance level for the stock appears at USD 3.30, and prices may test this level in the short-term (2-4 weeks). A further movement above USD 3.30 may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, the leading indicator RSI (14-period) is moving above the midpoint and shows a reading of 56.95. The volumes also seem supportive of the next upside movement. The prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as a support level in the near term.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, Hydrofarm Holdings Group, Inc. is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decision should be made depending on an individual’s 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 recommendation is as follows:

Upcoming Major Global Economic Events

Market events occur on a day-to-day basis depending on the frequency of the data and generally include an update on employment, inflation, GDP, consumer sentiments, etc. Noted below are the upcoming week's major global economic events that could impact the Russell 3000 Index and stocks’ prices: