(via ZEXPR) The Investment Center Broker Christian Ricci has analyzed DXC Technology, US deals, and a couple of breakouts in the market. The broker says that the AMD stock so far has continued to slump.
In this rundown, we will look at how the top leading stocks DXC Technology, United States Steel Corporation, and AMDhave been doing and whether it is the right time to invest in them or not.
A Quick Analyses of the Market
NASDAQ which cut a loss of 1% to 0.1%, the SP500 Dow closed about 30% of peace. While Russell 2000 outperformed but Small Caps have been struggling.
NASDAQ closing at 13,000 Mark
But first, let’s look at the NASDAQ here closing above that 13,000 marks.
It erased a 1% gain briefly turned positive before just edging lower Ricci says that we didn’t have another significant loss. Looking at the high and lows it wouldn’t have changed anything as the short-term lows were above the March lows.
Technically its performance still looks weak as it hasn’t changed anything fundamentally. Investment Center broker Christian Ricci says that “until we get above certain levels, above that trend line, even then the tax just shows you that we’re still in this split market”.
Small-Cap Stocks Performance
Russell 2000 IWM ETF that tracks small caps shows a strong gain. Looking at the 50-day line it shows that small-cap stocks are facing resistance.
The S&P and the Dow and the small caps were all doing well but the small caps world of 50-day line raises more concerns. Concerns like, How much of it is really strong and how much is weak? Below the 50-day line and the 21-day line may soon undercut the 50 which isn’t great. Even if the same momentum continues, it will still need to get above those levels as mentioned.
With S&P’s small decline The Investment Center broker Christian Ricci believes that the leading stocks are still doing relatively well.
Ricci further discusses 3 top stocks and their performances below:
DXC technology gained about 9% with heavy volume breaking out of consolidation. DXC has not been in talks because there’s a reason, for one, it has had seven straight earnings declines year over year. So, this is a problem preceding the pandemic with the stock. There seems to be a long downtrend showing a turnaround play but, fiscal 22, which starts very soon, DXC is in its Q4 is expected to re-bounce. As the RS line with at least a 52-week high shows that it is going to break out. With the buy point being 29.65 Christian Ricci says “technically the buy point range ends at 31.13, it’s still $0.02 above that. It can pull back at any time”. In this environment the pullbacks are fairly normal so, DXC Technology will revive to a good buy point for investors to dive in.
United States Steel Corporation
United States Steel Corporation ended up being a deep handle at 24% but it’s had a nice streak of gains. The stock has kicked off by an upside reversal at the 50-day line and it’s continuing to power higher showing the strength of this industry group.
There is also a strong volume on the breakout just like there wasn’t in DXC relative strength line. The stock saw a 24% plunge previously but with the 34% rise in its trend, it would not be surprising to see it thriving in the market. The chances of this stock pulling back now look a lot stronger.
The only issue here is that is it one of the laggers in the group? Do you jump on for this high? Ricci says that we should wait for its good buy point and this stock will be ready to run on the strong side of the market for more investment potential.
Last summer AMD had an incredible move, but it’s been lagging even before tech stocks got hit pretty hard, AMD was not doing a whole lot of good before then. It is still stuck in the downtrend.
It had a long stretch from November to early January of trying to break out, while the relative strength line was topping out in that area. Though it’s obviously the last month or more it’s really fallen off. AMD was stuck below the 21-day line, the 50-day line, and it’s now below the 200-day line. Ricci says that “with an 8-month low and whether it’s highfliers like some of the superstars like NIO or solid winners like AMD or Apple, they’re just down and it is unclear when all the leading stocks are going to come back necessarily, and it may be a while”. For AMD, Ricci says that “buy and hope” is not a good strategy. Investors might want to wait for this stock to pick up the pace.
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