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Coca-Cola's Bull Run Intensifies: Pole & Flag Breakout Expected!The chart shows that the stock price encountered resistance near the $65 level, subsequently dropping to $52, where it found support. After rebounding from this support, the price began to rise, successfully breaking through the Inverted Head & Shoulders pattern that had formed during the consolidation phase. Following this breakout, the price entered another consolidation period, created an Ascending Triangle Pattern. With another breakout, the stock price surged to an all-time high of $73.5 before experiencing a pullback. A bullish Pole & Flag pattern has emerged on the chart, signaling a potential continuation of the upward trend. It is expected that the price will break through this pattern and reach new highs in the near future.
NYSE:KOLong
by NaranjCapital
2
EdTech Unicorn Stride Surges: Strong Financials Fuel Rally!The EdTech revolution is progressing rapidly! As technology advances, internet access grows swiftly, and students seek innovative learning methods, the global EdTech market is flourishing. North America currently holds a significant 37.3% share, but regions such as the Middle East and Africa, Europe, and Asia-Pacific are gaining ground, fueled by government support, digital literacy, and a burgeoning middle class. It's an exciting time for digital learning, and there's even more to look forward to! ◉ EdTech Market Growth Outlook ➖ Valuation projected to rise from $220.5 million in 2023 to $810.3 million by 2033. ➖ Compound Annual Growth Rate (CAGR) of 13.9%. ◉ Government Initiatives Supporting EdTech Sector The US Department of Education has allocated $277 million in new grants through the Education Innovation and Research program to enhance educational equity and innovation, particularly in areas affected by the COVID-19 pandemic, specifically focusing on STEM education and rural regions. Recognizing the enormous opportunity in EdTech, we're examining a stock that exhibits remarkable growth potential within the sector. ◉ Company Overview Stride Inc. NYSE:LRN is a tech-driven education service provider offering proprietary and third-party online curricula, software, and services in the U.S. and globally. Their products support personalized learning for K-12 students through virtual and blended public schools, individual online courses, and supplemental materials in subjects like math, English, science, and history. Stride also emphasizes career learning in fields such as IT, healthcare, and business, and operates tuition-based private schools. Additionally, they provide post-secondary programs in software engineering and healthcare under brands like Galvanize and Tech Elevator, along with staffing services. Rebranded from K12 Inc. in December 2020, Stride has been incorporated since 1999 and is headquartered in Reston, Virginia. Investent Advice by Naranj Capital Buy Stride NYSE:LRN ● Buy Range- 77 - 80 ● Target- 115 - 120 ● Potential Return- 45% - 50% ● Invest Duration- 12-18 Months ◉ Market Capitalization - $3.31 B ◉ Peer Companies ➖ Graham Holdings NYSE:GHC - $3.23 B ➖ Adtalem Global Education NYSE:ATGE - $2.67 B ➖ Grand Canyon Education NASDAQ:LOPE - $4.04 B ➖ Laureate Education NASDAQ:LAUR - $2.25 B ◉ Technical Aspects ● Monthly ➖ The stock price initially faced resistance at $40 in 2011 but later found support at $17. ➖ Despite several attempts to break through resistance, the stock experienced significant declines. ➖ However, after a 12-year period, it finally broke out and rallied to a high of $84. ➖ Currently trading at $77.7, the stock is expected to continue rising in the near future ● Daily ➖ The daily chart indicates a clear uptrend in the price movement. ➖ An ascending triangle pattern has formed, and following the breakout, the price has retraced to the breakout level. ➖ At this moment, the price is attempting to find support at the 50 EMA. ➖ From a technical standpoint, the stock is resting at a support level, making it an attractive option for accumulation with a mid to long-term investment outlook. ◉ Relative Strength ➖ The chart clearly illustrates that Stride Inc. has greatly outperformed the US Smallcap 2000 index, achieving an impressive annual return of 82%, which is a notable achievement. ◉ Revenue & Profit Analysis ● Year-on-year ➖ In FY24, revenue surged by 11.3%, reaching $2,040 million, up from $1,837 million in FY23. ➖ EBITDA saw a substantial boost, climbing to $295.3 million in FY24 compared to $225.2 million the previous year. ➖ The EBITDA margin also experienced growth, rising to 14.47% from 12.26% in FY23. ➖ Additionally, diluted EPS witnessed an impressive increase of 57.91%, jumping to $4.69 in FY24 from $2.97 in FY23. ● Quarter-on-quarter ➖ In the latest June quarter, the company achieved a remarkable milestone with quarterly sales reaching an all-time high of $520.8 million. This marks a 3% increase from the $504.9 million recorded in the March quarter and a significant 10.75% rise compared to $470.3 million in the same quarter last year. ➖ EBITDA declined from $100.2 million to $82.3 million in the latest quarter, representing a 17.8% decrease. ◉ Valuation ◉ PE Ratio ● Current PE Ratio vs. Median PE Ratio ➖ The present price-to-earnings ratio for this stock is 16.2x, which is considerably below its four-year median price-to-earnings ratio of 18.9x times, indicating that the stock is currently undervalued. ● Current PE vs. Peer Average PE ➖ The stock presents a favorable valuation when considering its Price-To-Earnings Ratio of 16.2x, which is lower than the average of its peers at 18.3x. ● Current PE vs. Industry Average PE ➖ Stride appears to be offered at a more competitive price, featuring a Price-To-Earnings Ratio of 16.2x, which is significantly below the average of 19.2x for the US Consumer Services industry. ◉ PB Ratio ● Current PB vs. Peer Average PB ➖ The present PB ratio in relation to the average PB of peers indicates that the stock is somewhat higher, with a ratio of 2.8x in contrast to the peer average of 2.6x. ● Current PB vs. Industry Average PB ➖ When comparing the current PB ratio to the industry average, Stride appears to be considerably overvalued, exhibiting a PB ratio of 2.8x, while the industry average stands at 1.6x. ◉ Cash Flow Analysis ➖ The cash generated from operations has experienced substantial growth in fiscal year 2024, increasing to $278.8 million from $203.2 million in fiscal year 2023. ◉ Debt Analysis ➖ Stride has a total debt of $528.2 million, resulting in a debt-to-equity ratio of 0.44. ➖ The company generates sufficient interest income to exceed its interest expenses, indicating that interest payment coverage is not an issue. ◉ Top Shareholders ➖ BlackRock Inc. holds a significant ownership interest in this company, with a notable stake of 14.9%. This level of investment reflects BlackRock's confidence in the company's potential for growth and profitability. ➖ The Vanguard Group also maintains a considerable presence, owning 10.7% of the company's shares. ➖ Together, these two investment giants represent a substantial portion of the company's equity, indicating strong institutional support and interest in its future performance. ◉ Conclusion Upon examining Stride Inc.'s financial performance, we focused on essential metrics such as revenue growth, profit margins, and the stability of cash flow. Additionally, we assessed the company's future growth potential by looking into industry trends and the competitive landscape. As a result, we are confident that Stride Inc. is positioned to capitalize on new opportunities while effectively navigating challenges, making it an attractive option for both investors and stakeholders.
NYSE:LRNLong
by NaranjCapital
6
Antitrust Threat Looms Over Google, Shares Could Plummet by 10%!Google's dominance might be ending. A U.S. judge has decided that the company's control over search is unfair competition. This could lead to Alphabet, Google's parent company, being split up and a major change in online advertising. A new era of search could be coming, as the internet's main player may soon lose its power. Technical Analysis The share price has surged by over 190% since hitting its lowest point during the Covid-19 crash. Following a previous peak of $152, the stock experienced a significant drop and subsequently entered a prolonged phase of consolidation. After approximately 2.5 years of this price stabilization, the stock finally broke through its prior resistance in April 2024. This significant breakthrough resulted in an impressive surge, propelled the price to a new all-time high of $193. However, the stock price faced considerable resistance at that level, resulted in a decline and eventually breaking down of its upward-trending parallel channel. The stock is likely to experience a sharp decline of about 10%, finding support somewhere between $132 and $131.
NASDAQ:GOOGShort
by NaranjCapital
SPX: A Double Top at the peak could lead to a short-term fall! The chart depicts a steady upward trend of the index. After reaching an all-time high close to the 5,670 level, the index saw a significant decline, dropped by nearly 550 points. However, after a recovery, the index once again neared its previous high, but experienced another setback. The emergence of a Double Top pattern, along with a clear RSI divergence, indicates that the index may face difficulties in the near future. On the downside, immediate support is found between the 5,250 and 5,300 levels. A break below this support could lead to a considerable drop in the index.
SP:SPXShort
by NaranjCapital
NOC vs LMT: A Valuation War Between Top Defence Manufacturers!ABOUT COMPANIES Northrop Grumman NYSE:NOC excels in advanced aircraft systems, divided into four main areas: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems. Aeronautics Systems designs and manufactures cutting-edge aircraft for the U.S. military and global clients. Defense Systems integrates battle management and weaponry, while Mission Systems delivers innovative solutions for defense and intelligence. Space Systems focuses on solutions for national security and commercial purposes. Established in 1939 by John K. Northrop and others, the company is headquartered in Falls Church, VA. Lockheed Martin NYSE:LMT stands as a top global security and aerospace company, dedicated to the research, design, and production of advanced technology systems. It operates in four primary segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. The Aeronautics segment focuses on military aircraft, including combat and drones. MFC specializes in air and missile defense and precision strike systems. RMS develops military and commercial helicopters and cyber solutions, while the Space segment creates satellites and defense systems. Founded in 1912, the company is located in Bethesda, MD. MARKET CAPITALIZATION ● Northrop Grumman (NYSE: NOC) - $75.96 Billion ● Lockheed Martin (NYSE: LMT) - $135.53 Billion TECHNICAL ASPECTS ● Northrop Grumman ➖ The monthly chart shows that the stock price is currently on a distinct upward path. ➖ Previously, it faced resistance around the $360 level, caused a notable pullback. ➖ Subsequently, the price formed a Double Bottom pattern and broke out successfully. ➖ This breakout drove the price to an all-time high near the $556 level but the price started declining from there. ➖ Nevertheless, the stock price found strong support around the $420 level, allowed it to bounce back. ➖ Currently, the stock is approaching its previous all-time high, and if it can overcome that resistance, we can anticipate further price increases in the coming days. ● Lockheed Martin ➖ This stock is on a strong upward trajectory, consistently achieving higher highs and higher lows. ➖ Following a significant breakout around the $500 mark, the stock price surged and is now trading at $568.5, just shy of its all-time peak of $578.7. ➖ From a technical perspective, the price is hovering just below the upper boundary of a parallel channel, which may act as a resistance point. ➖ However, if the price can break through this range and maintain that momentum, we could see even greater upward movement ahead. Relative Strength ● The chart shows that the NYSE Composite TVC:NYA has provided a solid return on investment of about 18% in the last year. In comparison, Northrop Grumman and Lockheed Martin have done even better, with returns of around 20% and 27%, respectively. REVENUE BREAKDOWN ● Northrop Grumman The company derives its income from four main segments. ➖ The largest share comes from the space systems segment, contributing around 33%, which equates to $14.34 billion out of a total revenue of $43 billion. ➖ Next, the aeronautics systems segment adds nearly 27%, bringing in $11.61 billion of the overall revenue. ➖ The mission systems segment follows closely, accounting for about 26%, or $11.12 billion of the total. ➖ Finally, the defense systems segment generates nearly 14%, totaling $5.99 billion of the overall revenue. ● Lockheed Martin Similar to Northrop Grumman, this company also operates through four segments to drive its revenue. ➖ The aeronautics segment leads the way, contributing around 38.4%, which amounts to nearly $28.77 billion of the total revenue of $74.85 billion. ➖ The rotary and mission systems segment accounts for 26.4% of revenue, equating to $19.76 billion. ➖ Next, the space segment contributes 17.8%, which is $13.33 billion. ➖ Finally, the missile and fire control segment makes up 17.4%, totaling $12.99 billion of the overall revenue. REVENUE & PROFIT ANALYSIS ● Northrop Grumman Revenue ➖ For the FY23 the revenue has jumped by 7.3% to $39.3 B from $36.6 B in FY22. ➖ In the recent June quarter there is no significant surge in revenue as the recent quarterly revenue stands at $10.2 B compared to $10.1 B in the march 2024. But from the last year June quarter the revenue has grown by almost 6% from $9.6 B. Profit ➖ The operating profit has experienced a decline, with FY23 reporting only $2.9 billion, a drop from $6.3 billion in FY22. ➖ In the latest June quarter, the operating profit held steady at $1.3 billion, unchanged from the March quarter. Basic EPS (LTM) ➖ The basic EPS saw a slight rise in June, climbing to $15.26 (LTM) from $14.33 (LTM) in March 2024. However, compared to the same quarter last year, there has been a significant drop from $30.23 (LTM) Analyzing these numbers shows that although revenue has risen, the company is having difficulty producing profits, which may impact the share price in the near term. ● Lockheed Martin Revenue ➖ In FY23, the company experienced a slight revenue increase of 2.4%, rising to $67.6 billion from $66 billion in FY22. ➖ During the recent June quarter, revenue reached $18.1 billion, up from $17.2 billion in the March quarter. Compared to the same quarter last year, this represents a significant growth of approximately 8.6%, up from $16.7 billion. Profit ➖ The operating income has experienced a year-over-year increase. For FY23, it reached $9.0 billion, marking a 23% rise from $7.3 billion in FY22. ➖ However, there hasn't been a notable change in operating profit on a quarter-over-quarter basis. In June, the operating profit stood at $2.2 billion, slightly up from $2.1 billion in March. This figure is consistent with the operating profit reported in the same quarter last year. Basic EPS (LTM) ➖ The basic EPS stood at $27.58 (LTM) in June 2024 ➖ Over the past year, there has been no notable growth in EPS (LTM) Lockheed Martin demonstrates a more robust financial standing compared to Northman Grumman. VALUATION ● P/E Ratio ➖ P/E vs. Median P/E (1) Northrop Grumman's current price-to-earnings ratio over the past twelve months stands at 33.2x, which appears elevated when compared to its four-year median of 15.2x. (2) Lockheed Martin's recent twelve-month p/e ratio is 20.1x, also showing a rise relative to its four-year median of 16.2x. ➖ P/E vs. Industry P/E (1) NOC shows a fair valuation with a Price-To-Earnings Ratio of 33.2x, which is just below the US Aerospace & Defense Industry average of 33.3x. (2) On the other hand, LMT, with a P/E of 20.1x, seems to be undervalued relative to the industry average of 33.3x. ● P/B Ratio ➖ NOC's current P/B ratio of 5.3x appears inflated when stacked against the US Aerospace & Defense Industry average of 3.2x. ➖ In the case of LMT, it stands out as significantly overvalued, boasting a P/B ratio of 21.9x, which is far above the industry average of 3.2x. FREE CASH FLOW ANALYSIS ● Northrop Grumman ➖ In FY23, cash flow from operations saw a remarkable increase, climbing to $3.9 billion, a notable rise from $2.9 billion in FY22. ➖ In the most recent quarter, this figure reached $4.4 billion, up from $3.9 billion in March. ● Lockheed Martin ➖ There was little change in operating cash flow, with FY23 reporting $7.9 billion, which is nearly the same as the $7.8 billion recorded in FY22. ➖ On a quarterly basis, there has been an uptick; for the June quarter, operating cash flow stood at $8.8 billion, an increase from $8.0 billion in March and $7.7 billion in the same quarter last year. DEBT ANALYSIS ● NOC currently has a debt of $16.3 billion, resulting in a debt-to-equity ratio of 114%. While this may raise some concerns, the company boasts an interest coverage ratio of 5.2, indicating a solid ability to manage interest payments on its debt. ● In contrast, LMT carries a debt of $19.3 billion, leading to a debt-to-equity ratio of 311%, which suggests poor financial health. However, with an impressive interest coverage ratio of 8.9, the company is in a strong position to meet its interest obligations. TOP SHAREHOLDERS ● Northrop Grumman ➖ State Street Global has a notable 9.59% ownership in this firm, while The Vanguard Group possesses a considerable 8.22% stake. ● Lockheed Martin ➖ In addition to the 11.2% held by Lockheed Martin's Employee Stock Ownership Plan (ESOP), State Street Global and The Vanguard Group own 15.1% and 8.99% respectively. ➖ BlackRock also maintains a significant 7.13% interest in this company. CONCLUSION After reviewing all the financial metrics, it becomes evident that each company possesses distinct strengths and weaknesses. It's difficult to determine which one is the superior investment choice at this moment. A look at the monthly chart indicates that both companies are currently at a high point, but they could be good candidates for accumulation during any significant downturns. In 2023, the US spent $916 billion on defense, which was more than any other country. This was an increase of $55 billion from 2022. and this figure could increase given the current global landscape. Therefore, companies like Northrop Grumman and Lockheed Martin are expected to perform well in the foreseeable future.
NYSE:NOCLong
by NaranjCapital
US indeces pre market TuesdayHere's a breakdown of why the S&P 500 might drop to the next green zone based on the technical analysis depicted in the chart: 1. Resistance Zone (Upper Red Box) The chart highlights a resistance zone near the top, marked by a red box. This zone represents a price level where the S&P 500 has struggled to move higher and has reversed several times in the past. The price has recently touched this resistance zone and failed to break through it, indicating that selling pressure is stronger at this level. 2. Support Zone (Lower Green Box) The green box at the bottom represents a support zone, which is a price level where the index has previously found buying interest and reversed upward. The chart suggests that the price could potentially drop back to this support zone if the current downtrend continues. 3. Recent Price Action The price action within the last few candlesticks shows a downward movement after touching the resistance zone, which is depicted by the downward arrow. This suggests that sellers have taken control, and the price is likely to continue moving lower. 4. Breakdown of Support Levels The price appears to be breaking down through minor support levels (smaller green zones within the red box), which could indicate that the market is losing bullish momentum and could head towards the lower support zone. 5. Trading Setup The chart suggests a short (sell) trade setup, where the expected movement is for the price to drop towards the lower green zone. The green arrow indicates the anticipated direction of the price movement, while the red and green shaded areas likely represent the stop-loss and take-profit levels, respectively. Conclusion Based on the chart's technical analysis, the S&P 500 is expected to decline to the next green support zone due to the strong resistance at the current level, recent bearish price action, and the potential breakdown of intermediate support levels. If the price reaches the lower green zone, it might find support and possibly reverse, but until then, the outlook is bearish.
VANTAGE:SP500FTShort
by Elite_Forex
Major Sectors that may influence US Markets this week!Health Care Following an extended consolidation phase from December 2021 to August 2024, the healthcare index has developed an Inverted Head & Shoulder pattern. With a recent breakout, the index is now set to experience significant upward momentum. Industrials Similar to the healthcare index, the industrials sector has also established an Inverted Head & Shoulder pattern. Following its breakout, this index has shown positive movement. With a recent breakout from a brief consolidation phase, the index is ready to climb once more. Financials The financial sector plays a vital role in the US stock market. Recently, the financial index experienced a robust breakout after a lengthy consolidation phase, indicating that this sector could enhance the overall US market. Real Estate The real estate sector has faced challenges for a considerable time, with the index suffering a significant downturn. However, following a recent breakthrough, the index is making progress toward recovery.
SP:SPFLong
by NaranjCapital
1
Concerned about aging? Start investing in Addus now!The aging U.S. population is set to double by 2050, increasing the need for caregivers. Addus HomeCare Corporation, based in Frisco, Texas, provides essential personal care, hospice, and home health services. With a market cap of $2.35 billion, Addus reported $1.115 billion in revenue in June 2024, with a 27% profit increase. The company is debt-free and has major shareholders like Blackrock and The Vanguard Group. EPS is forecasted to grow significantly by December 2025. With a growing need for home healthcare services, the company is well-positioned to expand its customer base and market presence. Company Overview Addus HomeCare Corporation and its subsidiaries offer personal care services for the elderly, disabled, and those at risk of hospitalization in the U.S. It operates in three areas: Personal Care, Hospice, and Home Health. The Personal Care segment helps with daily activities like bathing, grooming, and meal preparation. The Hospice segment provides care and support for terminally ill patients and their families. The Home Health segment delivers skilled nursing and therapy services for those recovering from illness or hospitalization. Its clients include government agencies, managed care organizations, insurers, and private individuals. Founded in 1979, Addus is based in Frisco, Texas. Investment Advice by Naranj Capital Buy Addus Homecare Corporation NASDAQ:ADUS ● Buy Range- 120 - 125 ● Target- 150 - 160 ● Potential Return- 25-30% ● Duration- 10 -12 Months Market Capitalization - $ 2.35B Sector - Healthcare (Nursing) Technical Analysis ● The monthly chart indicates a clear upward trend in prices. ● Earlier, the stock peaked near the 129 (128.8 to be precise) level before experiencing a correction, which was subsequently followed by an elongated consolidation period from November 2020 to July 2024. ● Recently, the stock has successfully made a multi-year breakout of the previous resistance zone and has maintained its position above this breakout level. ● We expect this momentum to persist, leading to further price increases in the days ahead. Entry, Exit & Stop-loss ● Entry with Capital allocation strategy (1) consider adding 50% of your desired quantity at the current market price (132 - 133). (2) The second buying opportunity will be in the 120 - 122 range, where you can also add rest 50% of your quantity. ● Target Chart analysis indicates a promising upside potential of 25-30% for this stock from the best buying level, with a target around the 155 to 160. There is also a strong likelihood that the stock could exceed this target. ● Stoploss It is crucial to implement a strict stop-loss below the 115 level, as we anticipate that the stock may encounter challenges if it drops to this point. Revenue Breakdown The company generates its revenue through three primary segments. (1) The personal care sector represents around 74.2% of the overall revenue, totaling $827 million out of $1.11 billion. (2) Meanwhile, hospice services contribute nearly 19.7%, amounting to $219.8 million of the total revenue. (3) The home health segment accounts for approximately 6.1%, which translates to $67.8 million of the overall revenue. Sales & Profit Analysis ● A noticeable rise in revenue has been observed. For the June quarter, revenue reached $1.115 billion, marking an 11.6% increase from $999 million in June 2023 (YoY) and a 2.5% rise from $1.08 billion in March 2024 (QoQ). ● Additionally, profits surged by 27% in the latest quarter, climbing to $68.89 million from $53.83 million in the same quarter last year, and up 5% from $65.67 million in March 2024. ● The profit margin has also improved, increasing from 5.4% to 6.2% year-on-year. ● The basic EPS for the June 2024 quarter is reported at 4.28, marking a significant increase of 27% from 3.37 in the same quarter last year. Peer Companies (1) Privia Health Group (NASDAQ: PRVA) - $ 2.41B NASDAQ:PRVA (2) Amedisys (NASDAQ: AMED) - $ 3.21B NASDAQ:AMED (3) Astrana Health (NASDAQ: ASTH) - $ 2.33B NASDAQ:ASTH Valuation ● P/E vs Fair P/E Ratio ➖ The current PE ratio stands at 34.1x, slightly expensive to the estimated Fair PE of 28.7x. ● P/E Ratio vs Peers ➖ ADUS offers great value with a Price-To-Earnings Ratio of 34.1x, significantly lower than the peer average of 62.7x. ● P/E Ratio vs Industry P/E ➖ ADUS seems to come at a higher price, boasting a Price-To-Earnings Ratio of 34.1x, notably surpassing the US Healthcare industry average of 26.2x. Debt Analysis ➖ ADUS stands proudly as a debt-free entity, a remarkable transformation from five years ago when its debt to equity ratio stood at 12.9%. This significant shift underscores the company's commitment to financial health and stability. Top Shareholders ● Blackrock currently holds a substantial 16% stake in this stock, reflecting an impressive increase of 11.2% since the March quarter. ● Meanwhile, The Vanguard Group has also boosted its investment, raising its stake by 8.5% from the previous quarter, bringing their total holding to 7.74%. Earnings per Share Growth Forecasts Experts forecast that the earnings per share (EPS) could increase from $4.28 to $4.51 by December 2024, and further rise to $5.03 by December 2025. Conclusion With the growing need for home healthcare services, the company is well-positioned to broaden its customer base and enhance its market presence.
NASDAQ:ADUSLong
by NaranjCapital
1
Apple is a great buy once it exceeds 240! The stock experienced an extended period of consolidation, during which it formed several bullish chart patterns, including the Double Bottom and Rounding Bottom. After the price broke above the neckline of the Rounding Bottom, the stock surged to reach an all-time high close to the 237 level. Since then, it has retraced nearly 17%-18%, returned to its support level. Now, with a robust rebound underway, the stock is approaching its resistance zone, and there are strong expectations for a significant breakout. The optimal buying opportunity lies just above the 240 level.
NASDAQ:AAPLLong
by NaranjCapital
25
Dow30 - US30 Faces DownturnBLACKBULL:US30 has returned to a crucial resistance zone, which aligns with a bearish technical setup. After the recent decline, this move back to the resistance suggests that a further drop may be imminent, especially if the index fails to break above this zone. The pattern indicates that TVC:DJI could start its downward trend again following a retest of this level, where sellers are likely to re-enter the market. Fundamentally, the rising unemployment claims in the U.S. have heightened fears of a recession. With more individuals out of work, consumer spending could slow down, which negatively impacts corporate earnings and the broader economy. This situation could exert additional downward pressure on the Dow Jones, making the possibility of a significant decline more likely as investors brace for potential economic contraction.
BLACKBULL:US30Short
by Sober_Trading
Resistance is ahead! Can the Dow Jones make a break through? The index is clearly demonstrating a strong upward trend, consistently achieving higher highs and higher lows. During this upward movement, it previously established a bullish Pole & Flag pattern, and after breaking out, the index has continued to rise. At present, the index is trading just beneath its next resistance level. If the Dow Jones manage to break through and hold above this breakout point, it is likely to initiate a new rally.
BLACKBULL:US30Long
by NaranjCapital
Burlington Stores is set for significant upward movement. After the market crash in March 2020, the stock price stabilized around the 110 level and began to rise. This upswing drove the price to an impressive high near 350, reaching an all-time peak. During this phase, a Rising Wedge pattern formed, and following a subsequent breakdown, the stock underwent a significant correction, returned to its previous support level. Subsequently, the stock made a strong recovery, climbing to around 250 before encountering resistance. After a notable decline, it found support once more near 115. Another rebound occurred, leading the price to a recent breakthrough above previous resistance levels. It is anticipated that this momentum will persist, leading the stock to achieve new highs in the near future.
NYSE:BURLLong
by NaranjCapital
TKO is poised for a major multi-year breakthrough!Weekly Chart The 100 level has shown to be a significant resistance point for the stock, as it faced multiple rejections at this level. Following these rejections, the stock entered a significant consolidation phase, which led to the formation of a Symmetrical Triangle pattern. After breaking out of this formation, the stock price soared, reaching a peak around the 117 level before experiencing a decline. However, the stock found support at the 200 WEMA and rebounded from that level.. At present, the stock is lingering near the resistance zone, and with an increase in trading volume, there is a strong expectation that it will achieve a breakout this time around. The appearance of an Inverted Head & Shoulders pattern on the weekly chart indicates a bullish sentiment. Daily Chart The daily chart shows that after being rejected near the 117 level, the stock fell but then reversed by breaking above the double bottom pattern. Since then, the stock has maintained its upward trend and is now close to a major breakout. The rising volume indicates that the price is preparing for an upward move.
NYSE:TKOLong
by NaranjCapital
2
US30 - 4H DowJones is in a pullbackThe Dow Jones Industrial Average (DJIA) is currently facing significant bearish pressure, as indicated by recent market trends and technical analysis. The support trend line has broken, leading to a notable drop in the index. This break, coupled with a clear pullback, presents an opportune moment for traders to consider short positions with a logical stop loss. From a fundamental perspective, the rising rate of unemployment and the postponement of interest rate cuts are increasing the chances of a recession. These economic indicators suggest that the market could experience further declines as investors react to the potential economic downturn.
CAPITALCOM:US30Short
by Sober_Trading