US Markets Round-Up

This week, the Russell 3000 index, an important benchmark of the US stock market across market capitalizations, started on a slightly positive note and gained sharply in the previous trading session. The index made a high of 2293.19 during the week and settled at 2292.30 with a week-to-date (WTD) gain of ~4.92 percent on November 10, 2022. Other major indices such as S&P 500 and NASDAQ Composite witnessed a sharp bullish movement for the week. On November 10, 2022, the S&P 500 index settled at ~3956.38 with a WTD gain of ~4.93 percent, while the NASDAQ Composite Index settled at 11114.15 with a WTD gain of ~6.10 percent.

The indices soared after the release of US CPI data for October 2022, which suggests that the underlying inflation is cooling and creating the way for the Federal Reserve to ease its aggressive interest rate hikes. 

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 Aspen Aerogels, Inc. (NYSE: ASPN) and Digimarc Corporation (NASDAQ: DMRC) for the next 2-4 weeks duration: 

Aspen Aerogels, Inc.

Aspen Aerogels, Inc. (NYSE: ASPN) is an aerogel technology company that develops, designs, and produces aerogel materials. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Daily Chart)

ASPN’s prices witnessed a falling trendline breakout by an upside and are sustaining above the breakout zone, indicating the possibility of an upside movement hereon. Prices recently broke a crucial resistance of USD 13.19 as well, further supporting the positive bias. Now the next major resistance level for the stock appears at USD 15.60, and prices may test this level in the short-term (2-4 weeks). A further movement above USD 15.60 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 63.47. 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, Aspen Aerogels, 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:

Digimarc Corporation

Digimarc Corporation (NASDAQ: DMRC) is a US-based company that provides digital watermarking solutions. Noted below are the key price indicators for the stock:

Price Action Analysis (on the daily Chart)

DMRC’s prices broke a downward sloping trendline by an upside and are sustaining above the breakout level from the past few sessions, indicating the possibility of further upside move hereon. The trendline breakout is accompanied by increased volumes, further supporting a positive bias. Now the next major resistance level for the stock appears at USD 26.00, and prices may test this level in the short-term (2-4 weeks). A further movement above USD 26.00 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 above the midpoint and shows a reading of 67.61. 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 dynamic support zones in the near term.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, Digimarc Corporation 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: