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 the momentum. The index made a high of 2259.867 during the week and settled at 2255.725 with a week-to-date (WTD) gain of ~2.15 percent on July 07, 2022. Other major indices such as S&P 500 and NASDAQ Composite witnessed bullish momentum for the week. On July 07, 2022, the S&P 500 index settled at 3902.62 with a WTD gain of ~2.02 percent, and the NASDAQ Composite Index settled at 11621.346 with a WTD gain of ~4.44 percent.

The indices witnessed upside movement despite the release of negative economic data during the week such as ISM Services PMI and Initial Jobless Claims. As per the U.S. Department of Labor, the initial jobless claims numbers increased to 235,000 from 231,000 (unrevised level) in the prior week.

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 us have a look at the two NYSE/ NASDAQ listed stock picks from the technical standpoint. Noted below are recommendations based on generic insights, entry price, target prices, and stop-loss for Valens Semiconductor Ltd (NYSE: VLN) and ClearPoint Neuro, Inc. (NASDAQ: CLPT) for the next 2-4 weeks duration: 

Valens Semiconductor Ltd 

Valens Semiconductor Ltd (NYSE: VLN) is a leading supplier of semiconductor products for the professional audio video and automotive industries. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart)

VLN’s prices started to move upside after forming a positive divergence with RSI (14-period) at the lower levels and recently broke a downward sloping trend line by the upside, indicating the possibility of an upside movement. Now the next major resistance level for the stock appears at USD 4.35 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 4.35 backed by volumes may extend buying in the stock.

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, the leading indicator RSI (14-period) is recovering from lower levels and showing a reading of 39.11. However, the prices are trading below the trend-following indicator 21-period SMA and 50-period SMA, which may act as the resistance levels for the stock.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, Valens Semiconductor Ltd 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:

ClearPoint Neuro, Inc. 

ClearPoint Neuro, Inc. (NASDAQ: CLPT) is a neurology company that provides pinpoint treatment of neurological disorders. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart)

CLPT has given a falling trendline breakout on June 23, 2022 and since then trading above the breakout level, indicating the possibility of further upside movement. Now the next major resistance level for the stock appears at USD 16.50 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 16.50 backed by volumes may extend buying in the stock. 

Technical Indicators Analysis (On the Weekly Chart)

On the weekly chart, the leading indicator RSI (14-period) is showing a reading of 60.59, indicating a positive momentum build-up at the current levels. Prices are trading above the trend-following indicator 21-period SMA and 50-period SMA, further supporting an up move.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, ClearPoint Neuro, 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 geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

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: