Zak Mir takes a charting look at S&P 500, Nasdaq 100, Abits, Community Health, Datavault, New Era, NextTrip, Newegg, Tianci, Sagimet, USBC, X4.
Below I walk through the S&P 500 and Nasdaq 100 technical picture, then run through individual stocks I am watching with clear levels, trend channels and short-term targets.
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 gapped higher into the top of a rising trend channel that has been in place since April. Momentum readings have been supportive: we have effectively seen three RSI 50 rebounds through October. There was an overshoot toward the 40 area, but that actually helped clear weaker hands and left the market looking healthier on the upside.
Key levels to watch
- Near-term upside: the 7,000 level is within reach by the end of next month if momentum holds.
- Support to protect: the floor of the rising channel near 6,600 and the 50-day moving average around that zone. Staying above the 6,750 area keeps the bullish case intact.
Nasdaq 100
The Nasdaq 100 also gapped higher and is tracking toward the top of its April rising channel. We have at least three RSI 50 plus rebounds recently, which points to strong momentum.
Key levels to watch
- Near-term resistance: channel top currently near 25,800.
- Best case target: up to 26,600 by the end of November, which aligns with a late January resistance line projection.
- Support to watch: the channel floor and 50-day moving average around 24,200.
Stocks I’m watching
I like when names repeat on the list; it usually signals a higher-probability base. Below are the setups I am watching with targets and levels.
Abits Group Inc. (ABTS)
Shares rebounded neatly off the rising 50-day line around 6.20 The stock is inside a rising trend channel that started in March. It did not quite reach the top last rally, but the ceiling is presently moving toward about 11.80.
- Near-term support: recent resistance turned support around 8.00.
- Target: towards 11.80 by the end of next month while above those support levels.
Community Health Systems, Inc. (CYH)
We saw a gap up through July resistance near 3.97. The stock is tracking a rising trend channel from June and has room to run if it holds above the gap support.
- Key level: keep above the gap floor near 3.80 for the bullish setup to remain intact.
- Target: up to about 5.30 by the end of next month.
Datavault AI Inc. (DVLT)
Datavault has already cleared its second target and is trading well above the red target line at 2.30. Momentum suggests an extended run toward last September highs from the previous year.
- Near-term support: October resistance around 3.10. Staying above here keeps the path clear.
- Target: up toward the prior peak near 4.00, possibly before the end of the month if strength continues.
New Era Energy & Digital, Inc. (NUAI)
Nice breakout characteristics here. The stock cleared a second target around 5.80 and is now looking for a higher best-case target.
- Key support: recent broken resistance near 5.00.
- Target: best case up to about 8.40 by the end of next month while above support.
NextTrip, Inc. (NTRP)
NextTrip is trading inside a rising trend channel with a base around 5.20. There is obvious resistance near 6.00 that traders will want to respect.
- Support: the rising 200-day line sits just below 4.00.
- Targets: 5.20 then up to 6.00, and as high as 6.50 by the end of next month if the trend extends.
Newegg Commerce, Inc. (NEGG)
After a sharp pullback in August, Newegg has regrouped and moved back above recent resistance in the 0.60 area. The early recovery suggests a potential reversal of the post-August decline.
- Support: hold above 0.60.
- Target: a prior resistance line toward 1.10, ideally by the end of next month.
Tianci International, Inc. (CIIT)
Tianci consolidated around the 50-day line near 0.73 and produced a double RSI 50 rebound. That makes the case for an upside push out of a broadening triangle base that started in July.
- Support: 50-day moving average area at 0.73.
- Target: up to about 1.50 by the end of next month or possibly sooner if momentum continues.
Sagimet Biosciences Inc. (SGMT)
Sagimet broke through recent resistance near 8.80 inside a rising trend channel. The pattern looks constructive while the shares stay above logical stop zones.
- Stop area: a wider stop-loss zone near 8.00.
- Target: up toward 13.00 and potentially 14.00 by the end of next month.
USBC, Inc. (USBC)
USBC gapped up off the floor of its rising channel and has just pushed above RSI 50. The market context is supportive as the major indices sit above their 50-day lines.
- Near-term support: recent broken resistance around 0.91.
- Conservative entry: wait for an end of day close through the rising 200-day line near 1.17.
- Target: top of the channel toward 1.80 by the end of next month.
X4 Pharmaceuticals, Inc. (XFOR)
X4 is also in a rising trend channel. The 200-day line sits near 6.10 and the 50-day line around 3.34.
- Support: stay above the 50-day line at 3.34.
- Target: up to the 200-day area near 6.10 by the end of next month if the trend holds.
Technical themes to keep in mind
- RSI 50 rebounds have been a recurring theme across the major indices and several names on this list. Multiple RSI 50 touches often imply sustained momentum.
- Rising trend channels from April through mid-year continue to define the reward to risk on many setups. Respect channel floors and the 50-day moving average as first lines of defence.
- Gaps through resistance and gap support levels are important. Staying above the gap floor is often critical for the continuation trade.
“We could even dare to dream of the 7,000 level by the end of next month.”
That is the technical landscape for now. These setups will evolve with price and momentum, so manage risk and keep an eye on the key levels I have outlined. More updates tomorrow.
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.
