Zak Mir takes a charting look at S&P 500, Nasdaq 100, Bitmine, BIT Mining, Editas, Generation Bio, Momentous, Mobile-Health, Ovid, RumbleOn, ReShape, Sonnet, Webloon.
. In today’s USA Chartbreakers update I run through the technical setups across the S&P 500, Nasdaq 100 and a batch of small- and mid-cap names that are showing actionable chart patterns right now. Below I walk you through the key levels, targets and the worst-case supports to watch so you can see exactly what I’m watching on the charts.
Market overview: S&P 500 & Nasdaq 100
S&P 500
- Trend: Still inside the rising trend channel that began in April.
- Context: The late‑July gap down was closed early in August and we’ve continued higher since.
- Target: I’m looking for the S&P to reach about 6,600 — potentially by the end of next month, or even sooner if momentum holds.
- Support: The prior record high around 6,427 is now important — if we can hold above that, higher targets become more likely.
Nasdaq 100
- Trend: Also in a rising channel and pushing up toward the channel top.
- Near-term level: A move near 24,000 was the immediate target and yesterday’s high came within ~30 points of that mark.
- Stretch target: If we get that nudge, the next projection line (red resistance) is toward roughly 25,300 , which I’d like to see by the end of next month — sooner would be welcome.
- Support: The old peak around 23,000 (roughly 600 points below resistance) should act as new support while we’re above it. Worst-case downside would be a move back to the 50‑day line near the low-23,000s.
Stocks on my radar — quick reads and trade ideas
Bit Mine
- Setup: Rising channel with an approaching top near $81 .
- Target: Hoping to hit that level by the end of this month; further upside through $100+ by late September is possible if strength continues.
- Key support: Avoid an end‑of‑day close back below the gap floor near $54 . Worst case would be a test of the channel base and the 50‑day line around $34 .
- Near-term guidance: Stay at least on the right side of the ~$50 area intraday for the bullish case to remain intact.
BIT Mining
- Setup: A healthy unfilled upside gap and the shares reclaimed the old gap top around $3.70 .
- Target: Next resistance zone near $4.60 (previous resistance during the decline) is the logical upside target.
- Evidence: RSI pushed back above 50 after spending about a month under it — a constructive sign.
- Channel projection: The rising channel points toward a best-case target of around $6.50 (as per the channel projection) by the end of next month.
Editas
- Setup: Unfilled upside gap from the lows and above the 200‑day moving average; support sits at the 50‑day line ($2.45 ).
- Target: Looking for a move to $4.60+ by the end of next month, ideally sooner.
- Risk: A retest of the channel floor near $2.25 would be the corrective path if momentum fails.
- Note: There was a prior double‑peak “rug pull” from the July highs and resistance sits in the low‑$30s area post‑November (context for a longer timeframe).
Generation Bio
- Setup: An impressive bear‑trap reversal — the stock gapped down and then gapped up, creating a classic reversal pattern.
- Neckline & target: Neckline resistance is around $6.00 ; above that I’d be looking for roughly $9.00 by the end of next month.
- Moving averages: That move would clear the 200‑day moving average (~the mid‑single digits), so it’s a meaningful test of trend.
Momentous
- Setup: A gap up through the 50‑day line and a close around the late‑June peak (closed at $1.91 ).
- Target: On an end‑of‑day close above $1.90 the bulls are targeting the top of the channel near $3.30 by the end of next month.
- Support: Short‑term support is yesterday’s low near $1.50 , with the channel base closer to $1.35 as the deeper support level.
Mobile‑Health
- Setup: A broadening triangle base; recently cleared the 50‑day line near $1.12 and July resistance $1.19 .
- Target: Above $1.19 I’m looking for a move toward $1.70 by the end of next month.
Ovid
- Setup: Rising trend channel with a recent breakout through last month’s resistance.
- Trigger: The breakout level was around $0.73 on an end‑of‑day close.
- Target: Channel projection points to a top near $1.30 by the end of next month.
- Strengths: Multiple support points sit above a rising 50‑day line and recent price action showed a strong open‑to‑close rally (closed at the high of the day).
RumbleOn
- Setup: We’ve broken recent neckline resistance (roughly the $2.90 area) on an end‑of‑day close.
- Targets: Shorter term the 200‑day moving average sits near $3.70 ; stretch target around $5.00 by the end of next month.
- Structure: There’s an unfilled upside gap and the shares are back above a rising 50‑day line — a constructive setup.
ReShape
- Setup: Rebounding inside a broadening triangle base. Positive signs include a bear‑trap reversal and a close above the top of a recent gap ($2.57).
- Target: If the rebound holds, the top of the broadening triangle from June is up near $5.30 .
- Key level: Ideally the stock stays above the 50‑day line ($2.76 ) to keep the bullish case intact.
Sonnet
- Setup: After a rocky ride, Sonnet is showing signs of recovery — RSI back above neutral 50 and a solid end‑of‑day close above the rising 50‑day line.
- Support: The rebound came without touching the 200‑day line $2.20 ), which is constructive.
- Near‑term: While the stock remains above early resistance this week ($3.58 ), I’m looking for at least a partial retest of the old peak toward about $6–7 (a roughly halfway retracement of the recent pullback).
Webloon
- Setup: A spectacular gap up that cleared recent resistance (around the mid‑teens area).
- Target: With the breakout, I’m eyeing up to about $22.00 by the end of this month, based on an October 2024 resistance line projection.
How I’m trading these setups
My approach is simple: respect the structure. That means:
- Use end‑of‑day closes to confirm breakouts or breakdowns — intraday noise is common in small caps.
- Keep the 50‑day and 200‑day moving averages on your checklist. A clean break above the 50‑day is a helpful early confirmation; the 200‑day is a bigger trend filter.
- Define your invalidation point — the “worst case” support I mention for each chart is where I expect to re‑evaluate the trade.
Conclusion
Overall, the market structure across indices remains bullish while the S&P and Nasdaq continue to trade inside rising channels. Several small‑cap names are putting in constructive setups — bear‑trap reversals, unfilled upside gaps, and breakouts above key moving averages — and each has clearly defined upside targets and support levels. Stay disciplined, watch end‑of‑day confirmations, and manage risk around the support levels listed above.
More updates tomorrow — keep an eye on the charts.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
