Zak Mir takes a charting look at S&P 500, Nasdaq 100, Ameresco, Ametek, AirNet, DigitalOcean, JFB, Lemonade, Jyong, MBIA, Ontrak, Origin Materials, Palantir, Tidewater.
Today, we dive into the latest chart patterns and potential price targets for major indices like the S&P 500 and Nasdaq 100, alongside a focused review of select stocks ranging from Ameresco to Tidewater. This article explores the technical setups that could define market direction over the coming weeks, providing investors and traders with actionable insights.
Market Overview: S&P 500 and Nasdaq 100
The S&P 500 is currently attempting to recover after a sharp pullback last week that saw it gap down near the lower boundary of its rising channel. The immediate focus is on regaining strength above the gap’s top around 6,327, which has been tested twice recently. A sustained close above this level could pave the way toward retesting the highs near 6,427 and eventually reaching the upper channel boundary around 6,600. Given the early August setback, this target is more realistic for next month.
Support remains crucial, with the channel floor and the 50-day moving average near 6,148 acting as key safety nets. Notably, the 50-day line hasn’t been tested since May, highlighting the market’s strong run and the current neutral-to-bullish momentum that has helped stabilize prices after Friday’s lows.
The Nasdaq 100 mirrors this pattern, wrestling with channel floor support roughly at the 50-day moving average near 22,400. A decisive end-of-day close above the gap resistance at 23,200 is necessary to sustain upward momentum, aiming for the channel top near 24,000 later this month.
Stock Spotlight: Key Technical Setups and Targets
Ameresco (AMRC)
Ameresco’s chart shows a complex pattern including a bear trap island reversal, with multiple gaps signaling shifts in momentum. The current price action is testing old resistance near $23. Holding above this level could unlock a rally toward the channel’s upper boundary, potentially reaching $29 by the end of August or sooner.
Ametek (AME)
Ametek is trading within a well-defined rising trend channel since April. Support near $18.1 and the 200-day moving average just below $18 remain critical for sustaining the bullish trajectory. If these levels hold, the stock could climb to $25-$26 by month’s end, with a more bullish target of $20.5 also in sight.
AirNet (ANTE)
AirNet is showing a sharply rising formation after gapping above resistance last week. Maintaining levels above the recent $225 resistance is key to reaching the channel top near $450 before the end of August.
DigitalOcean (DOCN)
DigitalOcean has experienced a bear trap island reversal, indicating a potential breakout. Closing successively above the 200-day moving average around $34 could propel the stock beyond the broadening triangle’s top at $36, targeting $42 or higher by late August.
JFB Construction (JFB)
JFB is following a rising trend channel with resistance around $8.60 serving as a pivotal level. Staying above this could see the stock rally toward $12, possibly before the month ends.
Lemonade (LMND)
Lemonade has garnered attention recently, supported by a bear trap rebound and an unfilled gap above the 50-day moving average near $39.7. The stock looks poised to challenge the $70 target over the next month, provided it holds above the $43 resistance.
Jyong (MENS)
Jyong’s chart presents a series of bullish candles over recent weeks. Maintaining above Monday’s $24 resistance could see the stock push toward the channel top near $46, suggesting a straightforward upside move.
MBIA (MBI)
MBIA has seen a bear trap reversal with gaps down in February and April, followed by recent gains above $5.70 resistance. The channel top near $8 is an attainable target by the end of August, with $6 serving as an important support level.
Ontrak (OTRK)
Ontrak’s chart shows a sharp bullish divergence with lower lows in price but higher RSI readings, a positive technical sign. The key level to reclaim is $41, which acted as support in July. A close above this could open the door to $80 by next month.
Origin Materials (ORGN)
Origin Materials is forming an inverted head and shoulders pattern, a classic bullish reversal signal. Clearing the 200-day moving average near $86 alongside the neckline breakout could drive prices up to $106, the top of the broadening triangle, potentially by month-end.
Palantir Technologies (PLTR)
Palantir continues to impress with strength that could support the broader Nasdaq 100. The target is the top of the February channel near $210, likely achievable by next month if it remains above recent broken resistance around $162. Previous breakouts suggest solid follow-through potential.
Tidewater (TDW)
Tidewater’s chart features an inverted head and shoulders formation with a neckline near $53. A breakout here points toward the channel top around $79, which could be reached before the end of August, especially if it stays above the initial 2025 resistance at $59.
Conclusion: Navigating the August Market Landscape
August has started with some volatility, but the technical picture across major indices and a diverse set of stocks suggests opportunities for traders and investors who track chart patterns closely. Key support levels on the S&P 500 and Nasdaq 100, combined with promising setups in stocks like Ameresco, DigitalOcean, Lemonade, and Palantir, highlight potential upside targets over the coming weeks.
Staying above critical moving averages and resistance levels will be vital for maintaining momentum. With several stocks demonstrating bullish reversal patterns such as bear trap island reversals and inverted head and shoulders, the market could be gearing for a significant move higher as we progress through August and into September.
Keep a close eye on these technical signals and levels, as they will guide the best opportunities in this evolving market environment.
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.
