Zak Mir takes a charting look at S&P 500, Nasdaq 100, Coherent, Datadog, EZGO, Forge, Mativ, Orion Energy, SiTime, Skyline, and UroGen.
We are watching two key US indices closely as they try to decide direction. Both the S&P 500 and the Nasdaq 100 are testing key trend and moving-average levels. Momentum indicators have slipped, and we are on alert for a deeper pullback if those supports fail. At the same time, several individual stocks remain in rising channels and offer clear near-term targets and risk levels.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
S&P 500
The S&P is drifting lower toward the floor of the rising trend channel that has been in place since April. The 50 day moving average sits just below, roughly around 6,680, and that zone down toward about 6,660 is the first area we want to see hold. The RSI has fallen below the neutral 50 level, so caution is warranted.
If that support breaks, the next important area is October support near 6,550. That 6,550 zone is a key level for getting ourselves out of the current squeeze. To reverse the topping action we have seen, the market really needs to get back above roughly 6,800 quickly. On the upside, a resistance projection points toward about 7,000 as a best case end of year target if we can stay above the 6,660 zone.
Nasdaq 100
The Nasdaq has been under pressure amid fears of an AI sector pullback. The chart shows a classic island top formation with a gap up followed by a gap down. The 50 day moving average sits near 24,600 and, with the RSI slipping below neutral, that is the minimum downside we should expect to test.
Below that sits a stronger support area around 24,000 that has been holding since mid September. To regain upside momentum the index needs to recapture the gap region near 25,800. Doing so would give a chance to reach the red resistance projection around 26,800 by the end of the year. Staying on the right side of the channel floor and the 50 day line is essential for that scenario.
Stocks to watch
Below are the individual ideas and what to watch for in each case. Targets are short term unless noted otherwise, and stop or invalidation levels are given as end of day closes where mentioned.
Coherent Corp. (COHR)
The stock is up near the top of its rising channel and is aiming for the $180 plus area. As long as we remain above yesterday’s low at $150 on an end of day close basis, there is a path to roughly $185 by the end of the month.
Datadog, Inc. (DDOG)
Datadog is back at the top of its channel around the $190 zone. Yesterday’s high was $194 and an end of day close above $195 could set the stage for a fresh leg higher, with a potential target near $240 by the end of the month. Key downside invalidation is yesterday’s low near $177 on an end of day close basis.
EZGO Technologies Ltd. (EZGO)
EZGO is attempting a revival after a massive gap down followed by a gap higher at the turn of the month. We want to see the shares hold above the 50 day moving average, presently around $0.15. If that can be achieved, there is a chance to test the 200 day line near $0.32 in due course.
Forge Global Holdings, Inc. (FRGE)
Forge has been in a rising trend channel and has already exceeded the earlier $30 objective, pushing toward the upper parallel. The near term upside projection is as high as $45. This is a chart that has delivered on its trend, so it gets full marks for momentum performance.
Mativ Holdings, Inc. (MATV)
Mativ gapped up through the 50 day line and recent resistance around $11. The chart shows a rising channel from February; the upper parallel offers upside and a hope of reaching as high as $16 by the end of the month. Earlier channel work put an initial reference around $10, but the current focus is the breakout above $11 and the run toward the channel top.
Orion Energy Systems, Inc. (OESX)
New to the list, Orion Energy is in a clean rising trend channel. We saw a nice bounce and a bear trap rebound from below the floor of the channel around about $8.70. Both the 50 and 200 day moving averages are rising. The target is the top of the channel near $12, which could arrive as soon as the end of the month if momentum continues.
SiTime Corporation (SITM)
SiTime remains in a rising channel and is pushing toward the top, with targets near $400 to $420. The shares need to stay above recently broken resistance around $320 to keep that run intact.
Champion Homes, Inc. (SKY)
Skyline has broken out of its recent range and cleared the 200 day moving average at about $79. The next level up is the top of the recent gap at $84. Beyond that, prior resistance around $95 could come into play, possibly as soon as the end of next month, provided the stock stays comfortably above the $78 to $79 region.
UroGen Pharma Ltd. (URGN)
EuroGen has rebounded nicely off a rising 50 day moving average near $18. With recent broken resistance in the $21 zone now needing to hold, the top of the rising trend channel from August of last year suggests a target around $30. That is a realistic near term objective if the stock remains above the $21 area.
What to watch next
- For the broader market, watch the S&P channel floor and the 50 day moving average near 6,660 to 6,680, and October support around 6,550.
- For the Nasdaq, the 50 day at roughly 24,600 and the 24,000 support are primary downside levels. Reclaiming the 25,800 gap is necessary to reopen the path to 26,800.
- For individual names, keep to the end of day close invalidation levels noted for each stock and respect the 50 and 200 day moving averages where mentioned.
More updates will follow over the weekend as price action unfolds. Stay disciplined and watch the key support and resistance zones outlined above.
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.
