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 2314.806 during the week and settled at 2314.645 with a week-to-date (WTD) gain of ~3.87 percent on July 21, 2022. Other major indices such as S&P 500 and NASDAQ Composite also witnessed bullish momentum for the week. On July 21, 2022, the S&P 500 index settled at 3998.95 with a WTD gain of ~3.52 percent, while the NASDAQ Composite Index settled at 12059.609 with a WTD gain of ~5.302 percent.

The indices witnessed upside movement despite the release of negative economic data during the week such as US Unemployment Insurance Weekly Claims, Philly Fed Manufacturing Index, and Existing Home Sales. As per the U.S. Department of Labor, the initial claims numbers increased to 251,000 from 244,000 (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 stocks to pick from the technical standpoint. Noted below are recommendations based on generic insights, entry price, target prices, and stop-loss for Dover Corporation (NYSE: DOV) and Hive Blockchain Technologies Ltd. (NASDAQ: HIVE) for the next 2-4 weeks duration: 

Dover Corporation 

Dover Corporation (NYSE: DOV) is a global manufacturer and solution provider engaged in delivering equipment and components, aftermarket components, consumables, software, and digital solutions. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Daily Chart)

DOV's prices recently broke a falling channel pattern by an upside and are trading above the breakout level, 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 146.00 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 146.00 may extend buying in the stock.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, the leading indicator RSI (14-period) is showing a reading of 58.67, indicating positive momentum build-up at the current levels. The volumes seem supportive for the next upside movement. The 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, Dover Corporation is looking technically well-placed on the chart, and a ‘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:

Hive Blockchain Technologies Ltd. 

Hive Blockchain Technologies Ltd. (NASDAQ: HIVE) is a Canada-based blockchain sector company focused on mining and selling digital currencies. Noted below are the key price indicators for the stock:

Price Action Analysis (on the Weekly Chart)

HIVE's prices broke a falling wedge pattern by an upside on July 18, 2022 and since then trading above the breakout level, 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 5.25 and prices may test this level in the short-term (2-4 weeks). A further movement above USD 5.25 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 the lower levels and showing a reading of 37.70. The volumes seem supportive of the further upside movement. 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, Hive Blockchain Technologies 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 the 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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