Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, along with analyses of selected assets that are outperforming the market.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
This week the strength in the S&P 500 continued, with a gain of 1.6% to close at 5432, in turn resulting in another all-time high. The Nasdaq 100, the best of the US indices, recorded a gain of 3.5%, whilst the Dow Jones Index declined 0.7%.
The bullish momentum in equity markets remains strong. The S&P 500 has surged 31% since the low in October 2023 and 54% since the low in October 2022.
We continue to see individual stocks perform well. Our portfolio currently comprises over 20 US stocks, including LLY, AMP, META, NVDA and MCK. We have compounded these assets on multiple occasions, resulting in excellent profit for our Phoenix community members.
The FTSE 100, the UK’s premier index, declined 1.2% over the week, to close at 8147. Following a breakout above the all-time high in April, price has been bullish. As a result, we are now actively looking for opportunities.
OUTPERFORMING ASSET FOR THE WATCHLIST
Oracle Corporation – ORCL
Oracle Corporation (ticker: ORCL) is an American multinational computer technology corporation headquartered in Texas. In 2020, Oracle was the third-largest software company in the world by revenue and market capitalisation.
ORCL has a history of consistent and stable trends. This was particularly evident in its performance throughout 2021 and more recently, since October 2022, indicating a stock with steady trend potential. Following an all-time high in June 2023, price retreated to the $100 round number. Price has since regained strength, resulting in an all-time high this week.
ORCL closed the week at $138, reflecting a 9.7% increase. Price is using the weekly 50 SMA as long term support. Price is above the 50 and 200 SMAs. The Sublime trend filter remains green, indicating a sustained trend.
On the daily chart, the Sublime trend filter continues to signal green, and price is trading above the 20, 50, and 200 SMAs, reinforcing the near-term strength. Whilst the alignment of moving averages confirms the stock’s positive momentum.
Looking forward, the $200 round number is the next level of potential resistance. Our Phoenix community members will be keeping a close watch on the potential formation of any continuation patterns above the all-time high, as this could provide trading opportunities, given Oracle’s historical trend behaviour.
OUTPERFORMING ASSET FOR THE WATCHLIST
Synopsis – SNPS
Synopsys (ticker: SNPS) is an American electronic design automation (EDA) company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Synopsys supplies tools and services to the semiconductor design and manufacturing industry.
SNPS is a stock in a long term trend, gaining over 1400% since 2014. SNPS has a strong history of trends, which our Phoenix community has traded successfully in the past. The last bullish trend completed in December 2021. A breakout followed in May 2023 once price cleared the $400 round number. This month price has closed above the previous year high, a sign of strength and a potential breakout.
On the weekly time frame, price is in an uptrend. Price is trading above both the 50 and 200 SMA, and the Sublime trend filter is green. Whilst on the daily time frame, price is also trading above the 20, 50 and 200 SMAs, and the moving averages are aligned.
A continuation pattern above the all-time high could offer our Phoenix community members an opportunity in a good-performing stock. The next area of potential resistance is the $700 round number.
Looking Ahead
The strength in the US indices seen in May has continued into June. We believe the bullish trend will continue to dominate both the US and UK equity markets. Our multiple positions are benefiting from this momentum. As always, we will let price action guide our next move.
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
P.S. Answer 21 rapid-fire questions about your investing approach and then as if by magic, we will give you recommendations that are right for you and you’ll unlock your FREE Bonuses that will improve your investing results over the next 3 to 5 years.
