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 2330.89 during the week and settled at 2327.15 with a week-to-date (WTD) gain of ~1.49 percent on November 23, 2022. Other major indices such as S&P 500 and NASDAQ Composite witnessed positive movement for the week. On November 23, 2022, the S&P 500 index settled at 4027.26 with a WTD gain of ~1.56 percent, while the NASDAQ Composite Index settled at 11285.32 with a WTD gain of ~1.25 percent.

The indices showed a positive move after the supportive numbers of US Unemployment Insurance Weekly Claims. The seasonally adjusted initial US Unemployment Insurance Weekly Claims data published by the US Department of Labor fell by 4k to 222k for the week ending 19 November 2022 against the revised unemployment claims at 226k 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’s have a look at the one NASDAQ-listed stock to pick from the technical standpoint. Noted below recommendation is based on the entry price, target prices, and stop-loss for Fluence Energy, Inc. (NASDAQ: FLNC) for the next 2-4 weeks duration: 

Fluence Energy, Inc.

Fluence Energy, Inc. (NASDAQ: FLNC) is a US-based company that provides energy storage technology and services. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Daily Chart)

FLCN’s prices recently broke a downward sloping trendline by an upside and are trading above the breakout level, indicating the possibility of a further upside momentum hereon. 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 20.40, and prices may test this level in the short-term (2-4 weeks). A further movement above USD 20.40 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 62.79. The volumes seem supportive for the next upside movement. The prices are trading above the trend-following indicators 21-period and 50-period SMA, which may support the prices.

General Recommendation

As per the above-mentioned price action and technical indicators analysis, Fluence Energy, 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. 

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:

Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Note 1: Individuals can consider exiting from the stock if the Target Price or Stop loss mentioned as per the technical analysis has been achieved and subject to the factors discussed above. 

Note 2: How to Read the Charts?