Zak Mir takes a charting look at S&P 500, Nasdaq 100, American Superconductor, Applied Digital, AtlasClear, Aureus, Cognex, Health In Tech, Impinj, Newegg, Nvni, Silexion, Tesla.
Market Overview: S&P 500 and Nasdaq 100
The broader market picture is showing some cautionary signs, particularly with the S&P 500. Zak points out a “key reversal to the downside” on July 29, followed by another near reversal the next day, indicating potential weakness. Currently, the S&P is testing the floor of a narrow rising trend channel, with the July resistance around 6280 now expected to act as support. The next major support zone lies near 6200.
While the S&P remains above 6200, Zak anticipates the market could still rally to a peak near 6600 by the end of August. However, this outlook depends heavily on maintaining these support levels.
Turning to the Nasdaq, the chart has been somewhat stronger but recently also showed a key reversal to the downside. The index closed below the previous day’s low after initially trading higher, signaling a negative shift. Zak expects the Nasdaq to test the 23,000 zone, which aligns with the rising trend channel established since April. The worst-case scenario would see the index revisit the July support level near 22,400. On the upside, the channel’s top near 24,100 remains a target but may be delayed until the end of the month.
Stock Spotlights: Momentum and Key Levels to Watch
American Superconductor
American Superconductor is showing strong momentum after a recent gap-up following a “gap fill” buy signal identified at the end of June. The stock is moving toward the top of its channel, with a target near $75 anticipated by the end of August. Staying above $50, which represents a key support level from yesterday’s range, will be crucial for this bullish setup.
Applied Digital
Applied Digital is also experiencing upward movement within a rising trend channel that dates back to June of last year. The stock is aiming for $16 by month’s end, provided it remains above the support level near $12.20, which was previous resistance in July.
Atlas Clear
Despite recent challenges, Atlas Clear closed above July resistance at $21.70, signaling potential strength. Zak is eyeing a move toward the top of a broadening triangle base from May, targeting as high as $42 by the end of September.
Aureus
Aureus displays a classic bull flag pattern around the 200-day moving average, a formation Zak notes as quite reliable. The stock could reach $4 or more by the end of August if it holds above the 200-day line at $2.25.
Cognex
Cognex’s chart shows an interesting inverted head and shoulders pattern with a neckline near $34. While currently above February resistance just under $40, the stock could climb to $51-$52 by the end of September if it sustains momentum within its rising trend channel.
Health In Tech
Health In Tech recently gapped up off the floor of its rising trend channel and is targeting the 200-day moving average as well as the channel’s top near $320 by the end of August. Maintaining the gap support around $1.70 is key to this bullish outlook.
Impinj
Impinj is breaking through resistance decisively, gapping above the 200-day moving average and recent January resistance near $154. Zak expects a move toward $220 by the end of September if the stock stays on the right side of these levels.
Newegg
A regular highlight in Zak’s updates, Newegg is breaking out of a previously drawn channel and heading toward $79-$80 by month’s end. The stock needs to hold above broken resistance near $56 to maintain this upward trajectory.
Nvni
Nvni remains somewhat volatile but has solid support near $46.60, corresponding to a gap area. Zak looks for the stock to stay at the top of its rising trend channel, with a potential target near $95-$96 by the end of August, provided it remains above resistance around $58.
Silexion
Silexion is currently regrouping with a painful consolidation phase, typical of stocks testing the 200-day moving average. The stock is holding above the 50-day moving average at $13, and if it can maintain this level, the upside could extend toward the mid-$20s.
Tesla
Tesla’s shares are struggling to stay above the April uptrend line at $35 and are also below the neutral 50 level on the Relative Strength Index (RSI), indicating weakening momentum. Zak warns that Tesla may need to test the July support zone near $280 again. This retest could serve to clear out lingering weakness before any sustained rally.
Conclusion: Navigating the Market with Technical Insight
Zak Mir’s latest analysis underscores the importance of watching key support and resistance levels across both indices and individual stocks. The presence of key reversal signals in the S&P 500 and Nasdaq suggests some caution in the near term, but several individual names show strong setups within their trend channels and moving averages.
For traders and investors alike, maintaining a close eye on these technical indicators can help identify potential entry points and price targets. Stocks like American Superconductor, Applied Digital, and Newegg offer promising momentum plays, while caution is warranted in names like Tesla where downside risk remains.
Overall, the market appears poised for selective gains into August, provided support levels hold and key resistance zones are breached. Staying disciplined and responsive to chart signals will be essential as the market navigates this phase.
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.
