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 and continued its bullish momentum. The index made a high of 2207.890 during the week and settled at 2174.702 with a week-to-date (WTD) gain of ~4.67 percent on October 06, 2022. Other major indices such as S&P 500 and NASDAQ Composite also witnessed a bullish movement for the week. On October 06, 2022, the S&P 500 index settled at 3744.53 with a WTD gain of ~4.43 percent, while the NASDAQ Composite Index settled at 11073.311 with a WTD gain of ~4.71 percent.

The positive ADP Non-Farm Employment Change numbers released during the week supported the indices. However, an increase in the US Unemployment Insurance Weekly Claims numbers to 219,000 from 190,000 (revised level) in the prior 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 IDT Corporation (NYSE: IDT) and Village Farms International, Inc. (NASDAQ: VFF) for the next 2-4 weeks duration: 

IDT Corporation

IDT Corporation (NYSE: IDT) is a US-based telecommunication company engaged in the unified cloud, fintech and traditional communications services. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Daily Chart) 

IDT’s prices broke a falling trendline by an upside and are sustaining above the breakout level, indicating the possibility of further upside movement. The trendline breakout is supported by an increase in the volumes, supporting a positive bias. Now the next major resistance level for the stock appears at USD 33.00, and prices may test this level in the short-term (2-4 weeks). A further movement above USD 33.00 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 68.67. 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 levesl in the near term.

General Recommendation

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

Village Farms International, Inc.

Village Farms International, Inc. (NASDAQ: VFF) is a North American greenhouse producer that operates in Cannabis-Canada, Cannabis-US, and Energy segments. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Daily Chart)

VFF’s prices broke a downward sloping trendline by an upside and are sustaining above the breakout level from the past few trading sessions, indicating the possibility of an upside reversal hereon. The trendline breakout is supported by a sharp increase in the volumes, further supporting a positive bias. Now the next major resistance level for the stock appears at USD 2.85, and prices may test this level in the short-term (2-4 weeks). A further movement above USD 2.85 may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, the leading indicator RSI (14-period) is moving above the midpoint and shows a reading of 54.75. The volumes also seem supportive of the next upside movement. The prices are trading above the trend-following indicator 21-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, Village Farms International, 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: