Zak Mir takes a charting look at S&P 500, Nasdaq 100, Data Storage, GameSquare, Hub Cyber, LQR, Nuwellis, Offerpad, Q32, Rigetti, Sharplink, Smart Digital, Upexi.
Market Overview: S&P 500 and Nasdaq 100 Bounce Back
The S&P 500 staged a decent rebound, bouncing back from the critical 6200 support level that had been anticipated as a key floor. This support zone aligns with the upper boundary of a long-term triangle pattern dating back to May of last year. The immediate target on the upside is the 6380 level, which could be reached by the end of August if the market maintains momentum above 6200. Conversely, if the market dips below 6200, the next support to watch is 6147, a previous resistance level from February that traders hope will now hold as support.
Meanwhile, the Nasdaq 100 also showed strength with a robust hammer candle formation, bouncing towards 22,600. The February resistance level at 22,200 remains a critical downside threshold. On the upside, a breakout towards 23,200—marking the top of the May 2024 triangle—could materialize by the end of the month, presenting a bullish scenario for tech-heavy indexes.
Stock Spotlights: Technical Setups and Price Targets
Data Storage Sector
Data Storage stocks are showing promising signs after an unfilled gap to the upside. The main resistance level was around $420, and the price has now moved above yesterday’s support near $423. If this momentum continues, shares could reach as high as $645 by the end of July, following the rising trend channel established since August last year.
GameSquare: Navigating Volatility
GameSquare has experienced a volatile ride but recently hit a gap high, signaling potential strength. The key level to watch is $2; maintaining an end-of-day close above this price could pave the way for a climb towards the broadening triangle’s upper target of $3.50 by the end of August. Patience is advised given the stock’s current price swings.
Hub Cyber Security: Breakout Momentum
After a delay, Hub Cyber Security successfully broke out of a triangle pattern in May, gapping up above its 50-day moving average twice and surpassing the April resistance around $3.90. The next target lies around $6 or higher, corresponding to the March resistance, and could be achieved by the end of next month.
LQR House: The Top Riser
LQR House stood out as the top riser, reaching near the $8.60 mark, which was previously projected as a target. A critical level to hold is $8.20, the top of the rising trend channel base. Closing above this level could signal a fresh leg higher, with a potential stretch target of $17.60 along the parallel rising April channel by the end of August.
Nuwellis: Support and Rebound Potential
Nuwellis experienced a gap down in June followed by a gap up, suggesting that the neckline resistance around $12.80 may now serve as support. As long as the shares stay above this level, a rebound to the 50-day moving average near $23.23 appears likely.
Offerpad Solutions: A Strong Turnaround
Offerpad has shown a beautiful turnaround, breaking above recent resistance near $15.50 and surpassing the top of its channel around $42. The stock is on track for a target around $42 by the end of next month, supported by a climbing RSI that indicates strengthening momentum.
Q32: Encouraging Signs
Q32 is looking more promising, bouncing above its rising 50-day moving average and maintaining price above a recent resistance level near $22. The rising trend channel base supports a target of $46 by the end of August.
Rigetti Computing: Near-Term Favorite
Rigetti Computing has been a near-term favorite, breaking above resistance around $15.40 and entering a steep rising trend channel. The stock could reach as high as $25 by the end of next month, aiming for the channel’s upper boundary.
Sharplink: Strong Rally Continues
Sharplink’s shares closed back above the old support level at $27.80, a positive sign following a 29% jump yesterday. The next resistance target is near $49, with the stock maintaining support above its recent gap floor of $29.
Smart Digital: Upgraded Targets
Smart Digital’s upside targets have been upgraded from $10.30 initially to about $15.30, based on the upper parallel of its rising trend channel. A more ambitious target of $24 is projected by the end of July, giving the stock a couple of weeks to reach new highs.
Upexi: Testing Resistance
Upexi is trading back above old resistance at $6.80. The stock aims for the 50-day moving average and previous support before a gap down near $8.60, with RSI momentum pushing through the neutral 50 level—a helpful technical indicator for further gains.
Conclusion: Watching Key Levels and Momentum
The market’s recent rebound and the technical setups across various stocks point to a cautiously optimistic outlook. Maintaining key support levels like 6200 on the S&P 500 and 22,200 on the Nasdaq will be critical in the near term. Meanwhile, select stocks such as LQR House, Hub Cyber Security, and Offerpad Solutions show compelling setups that could reward patient traders.
Monitoring these levels and trend channels closely will help navigate what remains a dynamic market environment. As always, staying disciplined and watching for confirmation signals remains paramount for capitalizing on these chartbreakers
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.
