Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, along with analyses of selected stocks that are outperforming the market.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
S&P 500 Modest Pullback Expected As Trend Continues
The S&P 500 commenced July with a modest pullback of -1.1%. This pullback is to be expected following last month’s strong performance.
During 2023, the S&P 500 has yielded a favourable return of 14.4%.
On the weekly time frame, the price of the S&P 500 remains above both the 50 and 200 SMA (Simple Moving Average). Our proprietary tool, the Sublime trend filter, maintains a green signal. The moving averages are aligned, indicating a consistent trend.
The FTSE 100, the UK’s premier index, closed the week with a decline of 3.7%, closing at 7257. Price remains below the 50 SMA, but above the 200 SMA.
OUTPERFORMING ASSET FOR THE WATCHLIST
Fiserv Inc. - FI
FI: New Breakout Following Consolidation Commencing in January 2020
Fiserv Inc. is an American multinational company that provides financial technology services to clients across the financial services sector, including: banks, thrifts, credit unions, securities broker dealers, mortgage, insurance, leasing and finance companies, and retailers. In October 2015, Fiserv, Inc. was ranked third by revenue among technology providers to U.S. banks.
FI is a stock that has a history of linear trends. Since January 2020 the stock has been in a long period of consolidation. However, price is approaching the all-time high and could be positioned for a breakout and a recommencement of the long term trend.
The longer the period of consolidation, the greater the breakout.
FI concluded the week at $125, reflecting a slight decline of -0.8% compared to the previous week. Throughout 2023, FI has been bullish, with a gain to date of 23.8%. The all-time high for FI stands at $128, with the current price indicating a 2.3% decrease from that peak.
On the weekly time frame, the price of FI remains above both the 50 and 200 SMA. Our proprietary tool, the Sublime trend filter, maintains a green signal.
Meanwhile, on the daily time frame, the Sublime trend filter also remains green. Furthermore, the price of FI is trading above the 20, 50, and 200 SMA, and the moving averages are aligned. Last week the 20 SMA crossed the 50 SMA – as a result the moving averages are aligned, suggesting the evolution of a trend.
Looking ahead, a breakout with confirmation could offer an opportunity for our Phoenix community in a stock with a long history of sustained trends.
OUTPERFORMING ASSET FOR THE WATCHLIST
FTI Consulting Inc. - FCN
FTI: April Pullback Countered with Trend Resumption
FTI Consulting is a business advisory firm headquartered in Washington, D.C., United States. FTI is one of the largest financial consulting firms in the world and consistently ranks as one of the top global management consulting firms. The company specialises in the fields of corporate finance and restructuring, economic consulting, forensic and litigation consulting, strategic communications and technology.
FCN is a stock that was first floated in 1996. The stock has displayed periods of solid trends, such as in 2007, 2018 and 2019. Between July and December 2022 price was in a period of consolidation. This month price has been bullish with a gain to date of 7.0%.
On the weekly time frame, the Sublime trend filter is green. On the daily time frame below, price is trading above the 20, 50 and 200 SMA, and the Sublime trend filter is also green. Whilst the moving averages are diverging and aligned.
Looking ahead, the next area of resistance is the all-time high which now coincides with the $200 round number. We will update our Phoenix community should opportunities arise in a bullish stock with a history of strong trends.
Looking Ahead
Last week’s pullback was anticipated and we expect the S&P 500 to continue its bullish trend. As informed investors that understand market dynamics such as pullbacks, our Phoenix Community continues to profit from sensible investing.
At Sublime, our unwavering commitment lies in conducting thorough analysis based on objective data and factual evidence presented in the charts. By adopting this approach, we aim to provide valuable guidance to our esteemed Phoenix community, collectively exploring opportunities that hold the potential for long-term, profitable trades.
Keep it simple. Keep it Sublime.
The ST Team
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