US Technical Analysis Report

Kalkine’s US Technical Analysis Report for the US Equity Market 

Volatility in the stock market can open up new growth opportunities as some investments may become more reasonably priced. What should be the right investment strategy during a volatile market condition? Will the stock prices bottom out or fall further? - These are some of the vital questions that come to the mind of a prudent investor!

To tackle the increasing volatility and uncertainties in the market, Kalkine offers US Technical Analysis Report for the US Equity Segment – a technical analysis-driven research product to invest in stocks listed on NYSE and NASDAQ exchange having more than USD 250 million market capitalization. This product is specially designed for investors having an adequate risk appetite and financial flexibility and who are typically seeking opportunities for a short period.

Factors influencing the Stock’s Price Movements

Active portfolio management is a demanding task amid a highly volatile financial market environment. Stock market movements depend upon the sentiments of the market participants, and the two prominent emotions include fear and greed. Evolving fundamentals and macro-economic factors such as GDP, inflation, currency, demand & supply scenarios interest rates, etc. move the stock prices and create identifiable price patterns on the charts. Technical analysis is a way to gauge and benefit from these repeated patterns in a short time horizon.

Notably, the FTSE Russell 3000 Index yielded a YTD return of ~11.76%; it however, yielded an MTD return of ~0.37% (as of June 01, 2021). Seeking professional expertise is essential for investors to lower associated risks and to improve returns in scenarios like these. Kalkine’s US Technical Analysis Report is prepared after deep-research and back testing by a team of professionally trained technical analysts engaged in quantitative research.

Kalkine’s US Technical Analysis Report Offers Following Key Features: -

• Technical Research: Kalkine’s US Technical Analysis Report draws recommendations purely based on analysis of technical tools such as price action, indicators, support level, resistance level, candlestick patterns, volumes, relative strength index (RSI), simple moving averages (SMA), etc.

• Focus on the Trending Sectors: Kalkine recommends NYSE and NASDAQ listed stocks from trending sectors including Telecommunication, Technology, FinTech, Transport, Real-Estate, Healthcare, E-Commerce, etc.

• Volume Driven Stocks Provide an Edge: Volume plays a crucial role in technical analysis as stocks with high volumes are more liquid and provide for an ease of execution of the trade. Kalkine focuses on stocks with above-average volume that may have the potential for capital appreciation.

• Swing Trading Opportunity: By virtue of seizing short to medium-term gains in a stock, swing trading provides an edge over fundamental analysis as investors are not required to hold stocks for several months or years to generate desirable returns, thereby locking-up capital for a long duration.
  

• Risk-Reward Scenario: Risk-Reward ratio represents the prospective reward that can be potentially achieved for risks undertaken. This report facilitates decisions in the light of an appropriate entry-level, target prices, and a pre-defined stop loss.

Past Performances of Few NYSE listed Stocks from Technical Standpoint

Few NYSE-listed stocks that have recently witnessed a rally in a short time span include 3 D System Inc (NYSE: DDD) and Laredo Petroleum Inc (NYSE: LPI). DDD is a Tech Hardware and Semiconductors company that rallied ~32% in 2 weeks’ timeframe (May 17, 2021 to May 28, 2021) after the formation of a bullish engulfing candlestick pattern. The movement was also supported by RSI (~50 at the time of pattern formation) coupled with the 50-periods SMA trading below the current market price.

LPI is a hydrocarbon exploration company that yielded ~30% after the breakout of a downward sloping trend line from the lower levels within two weeks’ time (May 17, 2021 to May 28, 2021). The movement is accompanied by confirmation of technical indicators such as RSI, 20-period SMA, and 50-period SMA.

Chart: REFINITIV; Analysis: Kalkine Group

The returns generated by above stock picks (DDD and LPI) are higher than ~1.32% returns yielded by FTSE Russell 3000 Index over the past 2 weeks (May 17, 2021 to May 28, 2021).

To summarize, Kalkine's US Technical Analysis Report for the US Equity Market is easy to comprehend with insights on opportunities around the potential themes. This report aims to cover stocks after analysis of technical tools. The report covers an overall assessment of the market performance, taking cues from major global news and/or events impacting the market sentiments.

It must be noted that recommendations provided under this product are solely based on technical parameters, and the fundamental performance of the stocks have not been considered in the decision-making process. Key risks which could impact the stock’s prices include risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note: Trading decisions require a thorough analysis by investors. Technical reports in general chart out metrics that may be assessed by investors before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.