Zak Mir takes a charting look at S&P 500, Nasdaq 100, AtlasClear, AgEagle, Atlas Lithium, BioXel, BT Brands, CASI, Health In Tech, Lichen, Optical Cable, Plus Therapeutics, Verb.
Market Overview: S&P 500 and Nasdaq 100
The S&P 500 recently broke out of a narrow trading channel centered around the 6330 level, now transitioning into a broader channel supported by a rising red trendline and the 50-day moving average near 6139. Of particular interest was yesterday’s price action, where the market successfully closed a gap above 6327, signaling a potential recovery. The outlook suggests a possible climb back toward 6400, with an optimistic target near the channel top at 6600, which might unfold by the end of next month.
Additional bullish signals include a strong bounce well above the 50-day moving average and a rebound of the Relative Strength Index (RSI) to 50, indicating renewed momentum. The market’s pattern of opening at lows and closing at highs adds a positive spin, hinting at follow-through strength in the near term.
Turning to the Nasdaq 100, the index has been trading within a wider channel before the recent moves, with support around 22,600. Remaining above this level is crucial as it aims for the channel’s upper boundary near 23,900 by month-end. Like the S&P, the Nasdaq also posted a gap close buy signal, reinforcing the potential for upward momentum.
Stock Spotlights: Key Chart Setups and Targets
AtlasClear
AtlasClear’s price action has been somewhat volatile, but the critical factor remains holding above July’s resistance zone near $21.50. The stock now benefits from a rising 50-day moving average and an RSI above neutral 50, both bullish indicators. If it sustains above this resistance, a retest of last week’s $30 level is on the cards, with the best-case scenario seeing a rise toward $42 by month-end.
AgEagle
AgEagle continues to trade within a rising trend channel that began in April. A recent gap close buy signal paired with a bounce off the channel floor near $2.20 supports a positive outlook. The 200-day moving average also acts as a crucial support level. The target for AgEagle is toward the top of the channel, potentially reaching $4 by the end of August, provided it remains above key support.
Atlas Lithium
Atlas Lithium appears to be forming a rising trend channel base with a critical level at the 200-day moving average around $5.17. A decisive end-of-day close above this level could propel the stock toward $7.50 by month’s end. The recent RSI rebound above 50 and a solid move above yesterday’s range near $5 signal that short sellers may have been caught off guard, adding to the bullish momentum.
BioXel
Shares of BioXel are pushing toward the upper boundary of their rising trend channel, with a target near $3.50. Maintaining a position above the recent resistance at $2.20 on a closing basis is essential. The rising 50-day moving average and a bear trap rebound from below June’s support at the end of July further enhance the chart’s positive outlook.
BT Brands
BT Brands has experienced a spike through the top of a broadening triangle pattern originating in April last year. The immediate target is around $3.36, contingent on staying above the midpoint of yesterday’s trading range near $2.40. This breakout suggests potential for continued strength in the near term.
CASI Pharmaceuticals
CASI Pharmaceuticals has surged toward the upper end of its rising trend channel, with a near-term target of $2.50. There is potential to stretch toward the 200-day moving average near $2.70. Maintaining levels above the recently broken resistance at $1.77 on a closing basis is key to sustaining this upside.
Health In Tech
One of the most encouraging setups currently is Health In Tech, which has steadily climbed within a rising trend channel since April. The immediate target lies between $3.20 and $4.00, supported by a breakout above recent resistance at $2.20. An unfilled gap from last week has propelled shares to new near-term highs, adding to the bullish narrative.
Lichen
Lichen is attempting to recover from a significant earlier decline. The neckline resistance at $4.90 represents a critical hurdle. Surpassing this level could open the door to a move toward the top of the channel from April, potentially reaching as high as $9 by the end of the month.
Optical Cable
Optical Cable has displayed two recent gaps, the latest of which looks particularly promising. The stock faces resistance near $5.40, and a close above this on an end-of-day basis could push shares toward $8 by the end of August. Both the 50- and 200-day moving averages are trending upward, complemented by an RSI rebound, supporting a strong technical position.
Plus Therapeutics
Plus Therapeutics has formed a classic V-shaped bull flag breakout through recent resistance at $71. The stock is targeting the upper channel boundary, potentially reaching $125 by the end of next month, or possibly sooner. Two RSI rebounds above 50 reinforce the likelihood of hitting this target, which also includes intermediate price points near $101 and $120.
Verb Technology
Verb Technology has experienced a massive spike, aiming for the top of its channel near $30 by month-end. Maintaining a position above recent broken resistance at $17.60 is critical. Should this hold, the stock could even push beyond $35, highlighting strong upside potential.
Conclusion
Overall, the US markets and several key stocks are showing encouraging signs of recovery and breakout potential as August unfolds. The S&P 500 and Nasdaq 100 remain positioned within broader channels, supported by moving averages and RSI momentum. Individual stocks like AgEagle, Atlas Lithium, and Verb Technology stand out with compelling technical setups and attractive price targets.
Investors should keep a close eye on critical support and resistance levels, moving averages, and RSI signals, which continue to guide the near-term direction. With multiple gap closes and breakouts in play, the market is poised for potential gains in the weeks ahead.
Stay tuned for more updates as we continue to track these dynamic chartbreakers and emerging opportunities.
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.
