Zak Mir takes a charting look at the S&P 500, Nasdaq 100, and the best charting setups among US stocks.
Market Overview: S&P 500 and Nasdaq 100 Outlook
S&P 500: On Track for a Key Breakout
The S&P 500 is approaching a significant resistance level formed by a broadening triangle pattern dating back to May last year. Zak points to a target zone around 6360 to 6380, which could be reached as soon as the end of July, with potential to extend into early August. This bullish momentum is supported by favorable tariff developments, which have been a key catalyst recently.
Key resistance and support levels to watch include:
- Resistance: 6280 (initial July resistance), with eyes on 6380 in the near term
- Support: 6200 as a worst-case downside if tariffs or macro surprises disrupt the market
Nasdaq 100: Building a Steeper Uptrend
The Nasdaq is carving out a fresh, steeper rising trend channel, with a target near 24,400. For a sustained rally, closing above 23,300 is crucial, signaling the potential for a new leg higher. On the flip side, recent support around 22,600 acts as a safety net, though a breakdown here could indicate a sharp pullback.
Top Stock Setups to Watch
AG Eagle (Eagle): Rising Trend Channel in Play
AG Eagle is currently trading near the base of a rising trend channel, with strong momentum pushing it toward the channel’s upper boundary at around $360 pre-market. The next significant target for this stock lies at the upper parallel of the trend channel from January, near $550. This setup indicates a robust upside potential if the current trend sustains.
Nebulo Farmer: Broadening Triangle Breakout
Nebulo Farmer has gapped up sharply and is moving toward the top of a long-formed broadening triangle pattern, pointing to a target of about $460. Maintaining support above the recently broken $3 level is critical to keep this momentum alive.
Cycl: Breaking Key Resistance
Cycl has overcome a significant hurdle by breaking above its 50-day moving average, a level that previously capped gains. With this breakthrough, the stock is eyeing a price channel target near $46 over the next few months. The initial realistic milestone is the May base around $21, which could act as a strong support level.
Connects: Filling the Gap
Connects recently experienced a notable gap up early in the week, creating an unfilled gap that now acts as a magnet for price action. The shares are expected to push toward resistance near $3, provided they hold above the February resistance level of about $2.
Live Wire: Volatile but Promising
Live Wire has been a rollercoaster, with sharp moves up and down. After narrowly missing the last target, the stock is back within striking distance of the $460–470 range. Breaking above this could propel it toward the next level around $710 by the end of next month.
NIQ: Watch for Retracement
NIQ has seen a massive gap up, but caution is warranted. The best-case scenario involves a retracement to around $15.70, though this may be optimistic. Investors should monitor price action closely to gauge the stock’s next move.
Pineapple Financial: Testing Support
Pineapple Financial also gapped up significantly, with support likely forming at Tuesday’s high near $5. Holding above this level is key for a potential test of recent highs around $9.
Rich Sparkle: Surpassing Targets
Rich Sparkle has already exceeded previous targets, reaching the rising trend channel’s upper boundary near $17.30. The next ambitious target is the upper parallel of this channel, approaching $30, possibly within the next month. Staying above the initial spike at $15 from early July will be important for continued strength.
Zebra: Finding Support and Setting New Targets
Zebra is showing signs of support in the $11 to $11.50 range. From here, initial targets point to $13, with a best-case scenario targeting $16, coinciding with the top of a rising trend channel dating back to September.
Conclusion: Navigating Opportunities with Technical Insight
Zak Mir’s charting analysis offers a comprehensive view of market dynamics and individual stock setups that can guide traders and investors through the current landscape. With the S&P 500 and Nasdaq 100 poised for potential breakouts, and several US stocks exhibiting strong technical patterns, the coming weeks could present several lucrative opportunities.
Key takeaways include the importance of monitoring critical resistance and support levels, watching for trend channel breakouts, and managing risk around volatility and potential retracements. Staying informed and agile will be essential to capitalize on these developing chart patterns.
For ongoing updates and detailed chart analysis, keep an eye on these market movers and prepare to adjust your strategies accordingly.
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.
