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 negative note; however, gained bullish momentum later. The index made a high of 2412.032 during the week and settled at 2403.567 with a week-to-date (WTD) gain of ~0.74 percent on August 04, 2022. Other major indices such as S&P 500 and NASDAQ Composite also witnessed bullish momentum for the week. On August 04, 2022, the S&P 500 index settled at 4151.940 with a WTD gain of ~0.524 percent, while the NASDAQ Composite Index settled at 12720.580 with a WTD gain of ~2.66 percent.

The improved ISM Services PMI data released during the week supported the market sentiments. However, the US Unemployment Insurance Weekly Claims numbers increased to 260,000 from 254,000 (revised level) in the prior week, which limited the gains.

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 NYSE/NASDAQ listed stocks to pick from the technical standpoint. Noted below recommendations are based on the entry price, target prices, and stop-loss for Uranium Energy Corp. (NYSE: UEC) and Bit Digital, Inc. (NASDAQ: BTBT) for the next 2-4 weeks duration: 

Uranium Energy Corp. 

Uranium Energy Corp. (NYSE: UEC) is a uranium mining and exploration company engaged in the investigation, pre-extraction, extraction, and handling of uranium projects in the United States and Paraguay. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart)

UEC's prices started to move upside after taking support from a long-term rising trendline, indicating the possibility of further upside movement. 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 4.90, and prices may test this level in the short-term (2-4 weeks). A further movement above USD 4.90 may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, the leading indicator RSI (14-period) is moving in a positive zone and showing a reading of 53.64. The volumes seem supportive for the next upside movement. However, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may support the prices.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, Uranium Energy Corp. 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:

Markets are trading in a highly volatile zone currently due to certain macro-economic and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Bit Digital, Inc. 

Bit Digital Inc. (NASDAQ: BTBT) is a holding company engaged in the bitcoin mining business through its wholly owned subsidiaries in the United States and Canada. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Daily Chart)

BTBT's price recently took support from a falling trendline and started to move upside, indicating the possibility of further upside movement. 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 1.85 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 1.85 may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, the leading indicator RSI (14-period) is recovering from the lower levels and showing a reading of 47.96. The volumes seem supportive for the next upside movement. However, the prices are trading below the trend-following indicators 21-period SMA and 50-period SMA, which may act as a resistance in the near term.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, Bit Digital, 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:

Markets are trading in a highly volatile zone currently due to certain macro-economic and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

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