Zak Mir takes a charting look at S&P 500, Nasdaq 100, AxoGen, Fly-E, ProPetro, Processa, ProFac, Roadzen, Teradyne, Uni-Fuels, Vsee, Olympic Steel.
The S&P made a strong run toward the top of its long-term channel, the Nasdaq 100 cleared the first channel from April, and a batch of small and mid-cap names are showing clear breakout setups. Below, I run through the higher-level market picture, then walk stock by stock through the key levels, targets 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 has made a solid attempt to reach the top of its channel and is heading toward the 7,000 area. That 7,000 figure has been our target into the end of November, and the market has even attempted to get there by the end of October. There are two unfilled gaps to the upside which are a bullish sign, and while yesterday’s price action was mixed the overall structure is strong so long as we remain above the initial October resistance around 6,780.
Nasdaq 100
The Nasdaq 100 managed to hit the top of the first channel that began in April. That was a surprise to many, given earlier tariff related volatility, but price has pushed through. We are looking at a January time projection toward 27,000, with a nearer term objective by the end of next month. The key short term pivot to watch is the October resistance at 25,300. Multiple RSI rebounds above the neutral 50 level over recent weeks support the bullish case.
How I read the technical signals
- Gap up through resistance — When shares gap up through resistance it often produces further upside, at least temporarily. Two unfilled gaps to the upside on an index are a sign of strong buying pressure.
- RSI behaviour — Rebounds of RSI above 50 are constructive; persistent bounces at or above 50 indicate positive momentum rather than weak choppy action.
- Moving averages — A break above the 50-day or 200-day moving average that holds on a follow through is often supportive. A rising 50-day together with price above it is a bullish combination.
- Trend channels — I use rising trend channels from prior months to estimate upside targets (top of channel) and support floors (base of channel).
Stock scan and setups
Axogen, Inc. (AXGN)
Setup: Gap up through resistance into a rising trend channel that stretches back to April.
Key levels and outlook:
- Target: Around the $30 zone (top of the channel) by the end of next month.
- Support: The old February resistance near $21 is now the key floor to stay above for the bullish case.
- Comment: A gap through resistance usually delivers further upside, at least initially, so this is a straightforward breakout setup.
Fly-E Group, Inc. (FLYE)
Setup: After a sharp pullback in August the shares are attempting to regroup inside a rising trend channel.
Key levels and outlook:
- Target: Approximately $2.20 by the end of next month while price holds the channel base.
- Support: The channel floor and the 50-day line, around $0.67, are critical; the 50-day has just been pushed through to the upside and is rising, which is encouraging.
- Comment: RSI has pushed through neutral 50 — a sign that this rally may have legs.
ProPetro Holding Corp. (PUMP)
Setup: Two unfilled gaps to the upside after a strong reversal sequence; this looks like a bear trap reversal after a gap down in July followed by a gap up.
Key levels and outlook:
- Target: Around $13 in the coming days to weeks.
- Support: Recent broken resistance near $9.50; dips toward that zone are being regarded as buying opportunities.
- Comment: The initial gap up around $7.30 was an early signal for a reversal. Strength since then has left two unfilled gaps which often fuel further short term gains.
Processa Pharmaceuticals, Inc. (PCSA)
Setup: Rising trend channel; this looks like a second chance rally after earlier sellers were flushed out.
Key levels and outlook:
- Target: Approximately $0.61, the top of the channel.
- Support: The 200-day moving average near $0.33 is the primary structural support to stay above.
- Comment: For traders who missed the first leg, this could be attractive as the market gives a second shot at entry.
ProFrac Holding Corp. (ACDC)
Setup: Rising trend channel and gap breakout attempting to reach the channel top and the 200-day average area.
Key levels and outlook:
- Initial Target: Around $6.20, which is the top of the immediate gap area and near the 200-day average.
- Extended Target: Up to $7.16 (top of the channel) in the first half of next month if momentum continues.
- Support: Recent broken resistance around $4.50.
Roadzen, Inc. (RDZN)
Setup: Rising trend channel with a clear push toward the upper parallel.
Key levels and outlook:
- Target: $2.20 by the end of next month.
- Support: Recent broken resistance near $1.50 is now the level to hold.
- Comment: RSI bouncing above neutral 50 is a positive momentum signal for the shares.
Teradyne, Inc. (TER)
Setup: The chart shows a rising trend channel from January, with a prior break around the $150 level and a subsequent gap higher through resistance this month.
Key levels and outlook:
- Target: Upper parallel of the rising trend channel near $200 plus.
- Comment: The pattern of RSI bounces at or above 50 this month alongside an unfilled gap higher is a constructive sign of strength.
Uni-Fuels Holdings Limited (UFG)
Setup: Break of a neckline around $1.20 and a potential gap fill to the upside.
Key levels and outlook:
- Target: Floor of the gap up to about $2.10 over the next month or sooner.
- Extended Target: Best case to the top of the falling trend channel from April at around $4.00 if the turnaround continues.
- Comment: This looks like a neat turnaround for fans of the name with a clear neckline break already in place.
VSee Health, Inc. (VSEE)
Setup: Cleared the 200-day moving average at roughly $1.13 and shows a broadening triangle from June.
Key levels and outlook:
- Target: Retest of $2.30, which is the top of the broadening triangle.
- Support: The 200-day line is now a key reference; RSI shows a positive rebound helping to drive the stock higher.
Olympic Steel, Inc. (ZEUS)
Setup: Broadening triangle with the potential to move to the top of the pattern.
Key levels and outlook:
- Initial Target: $40 for the top of the triangle.
- Extended Target: A higher resistance zone around $43 is a secondary target.
- Support: Recent broken resistance near $35.60 should hold to support the bullish view.
Summary and what I am watching next
Overall the technical tone is bullish across the major indices and many individual names. The S&P is working toward 7,000 with the short term pivot at 6,780. The Nasdaq 100 has cleared its April channel and is eyeing 27,000 in the coming months while holding 25,300 as the important October resistance-turned-support.
On individual names, look for follow through on gap breakouts, RSI holding above 50, and price remaining above key moving averages. Targets are generally set for the top of rising channels or the tops of gap areas within the next month or so. Dips toward recently broken resistance zones often present buying opportunities in these setups.
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.
