Zak Mir takes a charting look at S&P 500, Nasdaq 100, Boqii, Caravelle, Emergent Biosolutions, Geopark, Globalstar, Nuwellis, BIG Pharma, VivoSim, and Wellgistics.
Markets are showing some caution as we head into November. The big picture still has upside potential, but a couple of technical warning signs mean we must respect resistance levels and moving averages. Below I walk through the S&P 500 and Nasdaq 100, then run through the individual stocks I am watching with price targets, key support levels and what to watch next.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Market overview
S&P 500
The S&P is looking slightly less glorious than it has been of late. There is an RSI resistance line running just under the 70 zone, which creates a bearish divergence that could pull the market back toward the early October broken resistance around 6,780. While we remain above that level I am looking for the top of the channel to potentially reach as high as 7,000 by the end of next month.
Worst case on a deeper retracement would be a revisit of the rug pull area around 6,630 and the 50 day moving average. Keep the 50 day in focus as a near term trend guide.
Nasdaq 100
The Nasdaq is trying to consolidate recent highs and looks a touch better in relative terms than the S&P. We have already gapped higher and hit the channel top that has been in place since March near 26,000. There is scope for a further extension toward the late January resistance projection around 26,600 by the end of next month.
Maintaining price above the initial October resistance near 25,200 is important. The downside alternate is the floor of the channel and the 50 day line closer to 24,500.
Stocks to watch
Boqii Holding Limited (BQ)
Price action had a line drawn toward the $20 zone and intraday we actually overshot that. The key area to watch is around $19. While the stock stays above the recent broken resistance around $10 the setup remains constructive, but volatility has been large so tightening stops is difficult.
- Near term target: around $19 to $20
- Support / stop to respect: recent broken resistance near $10
- Note: high volatility means wider stops
High-Trend International Group (HTCO)
Caravelle is in a rising trend channel after the May pullback. The top of the channel targets roughly $14. I want to see price stay above the recent broken resistance and remain on the right side of $9.
- Target: $14
- Key support: $9 and rising 50 day moving average
- Technical strength: RSI has rebounded above the neutral 50 level and the stock bounced above a rising 50 day line
Emergent BioSolutions Inc. (EBS)
This one has cleared resistance and is heading toward the top of its channel. The channel top near $14.40 might be a little conservative; $15 is a reasonable upside target while the stock remains above the recent broken resistance around $12.
- Target: $14.40 to $15
- Support: recent broken resistance near $12
GeoPark Limited (GPRK)
Geopark gapped through the 200 day moving average, an encouraging sign, and has broken above the June peak at about $7.80. I am looking for a run to $9 provided the stock holds above that June high on an end of day close. The RSI 50 rebound is another bullish signal.
- Target: $9
- Confirmation: end of day close above the old June peak ($7.80)
Globalstar, Inc. (GSAT)
Globalstar has been in a rising trend channel since last November. The top of the channel points toward roughly $60. As long as price stays above recent broken resistance at $48 the upside path remains intact.
- Target: $60
- Support: $48 recent broken resistance
Nuwellis, Inc. (NUWE)
Nuwellis appears to be building a rising trend channel base with the floor around $3. A break and end of day close through the 50 day moving average near $3.95 could open a much larger move toward the top of the channel near $9. That $9 level might be more of an end of year objective given the distance from current price.
- Initial confirmation: end of day close above the 50 day at $3.95
- Upside target: $9 (longer term)
- Caution: wait for the 50 day breakout if you prefer a conservative entry
Perimeter Solutions, Inc. (PRM)
Perimeter Solutions is delivering a decent recovery inside a rising trend channel. The channel top heads toward about $32, which I would expect by the end of next month if the pattern holds. Maintain the trade while there is no end of day close back below the initial October resistance at $24.85.
- Target: $32
- Key risk level: end of day close below $24.85
VivoSim Labs, Inc. (VIVS)
VivoSim is in a rising channel with the top near $5. The important short term technical is holding above the 50 day line, which sits just under $3. If that holds expect at least an initial move to around $3.50, then the channel top by the end of next month. I do not want to see closes below the earlier broken resistance at about $2.50.
- Short term target: $3.50
- Channel top: $5
- Key support: $2.50 and 50 day line just under $3
Wellgistics Health, Inc. (WGRX)
Wellgistics remains volatile. Sellers have been active around roughly $1.50, but we have seen a bounce off support near the $0.62 area. Above that support I am watching for a move toward the top of the range near $1.60 over the next month or so. The initial near term support to respect is the $1.00 area and the 50 day moving average.
- Target: $1.60
- Initial support: $1.00 and stronger support at $0.62
- Note: keep an eye on selling pressure near $1.50
Final thoughts
The markets are not broken, but there are a few technical checks to pass. For the major indices keep an eye on RSI resistance and the 50 day moving average. For individual names, the repeating theme is clear breakouts through resistance, holding above the 50 day, and trading inside rising channels. Use end of day closes for confirmation where I mention them and respect the support levels listed if you want to manage risk tightly.
More updates over the weekend.
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.
