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
Trading was somewhat muted this week with the Thanksgiving holiday in the US. However, the S&P 500 was still able to record a healthy gain of 1.0%, to close at 4559. November has been an excellent month for the bulls with a gain to date of 8.7%, its strongest month since July 2022.
On the weekly time frame, price is trading above both the 50 and 200 SMAs (Simple Moving Average). Price is marginally below the pivot high from July 2023. Whilst on the daily time frame, price is also trading above the key moving averages, the 20, 50 and 200 SMAs, and the moving averages are all aligned. Price is now 30% above the October 2022 lows and, given price is above all key moving averages mentioned above, we are actively seeking new positions from our watchlist.
We continue to see individual stocks perform well. Our portfolio currently compromises 18 US stocks and 3 currencies. We have compounded a number of these assets, in turn, delivering excellent profit for our Phoenix community members.
The FTSE 100, the UK’s premier index, had a muted week with a decline of 0.2. Price remains range bound between 7200 and 7700. On the weekly time frame, price remains below the weekly 50 SMA, but remains above the weekly 200 SMA. Should strength return, the next major area of potential resistance is the pivot high from 17 April at 7936. The all-time high is 8047. We continue to monitor this index, waiting for confirmation of direction.
OUTPERFORMING ASSET FOR THE WATCHLIST
Republic Services Inc. - RSG
Republic Services, Inc. (ticker: RSG) is a provider of non-hazardous solid waste collection, transfer, disposal, recycling, and energy services. The company operates through collection operations, landfill operations, transfer station operations and recycling operations segments.
RSG has demonstrated a history of long-term trends, including between 2014 and 2020, as well as in 2021. Since October 2021, the price has been consolidating, but November is demonstrating a breakout month with a gain to date of 8.0% and an all-time high.
On the weekly time frame, the price continues to trade above both the 50 and 200 SMA. Our proprietary tool, the Sublime trend filter, remains green and the moving averages are aligned.
Whilst on the daily time frame, the Sublime trend filter is also green. Price is trading above the 20, 50 and 200 SMAs, and the moving averages are also aligned. Since the last earnings report price has been particularly bullish with a gain of 8.6%.
Looking ahead, the next area of potential resistance is at the $200 round number. A continuation pattern above the all-time high could present an opportunity for our Phoenix community members to invest in a strong trending stock.
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. As of 2023, the company is a component of both the Nasdaq-100 and S&P 500 indices.
SNPS is a stock in a long term trend, gaining over 1200% 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. Between January 2022 and April 2023 price was in a large range of consolidation. In May price broke out in the direction of the overall trend, with a gain of 23%. And that trend has continued, resulting in an all-time high this month at $549.
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. Since price broke above the 50 SMA on 7 November, price has been bullish, gaining over 62%. Whilst on the daily time frame, price remains above all moving averages and the Sublime trend filter is also green.
A continuation pattern above the current all-time high could offer our Phoenix community members an opportunity in a good-performing stock. The next area of potential resistance is the $600 round number.
Looking Ahead
This week has seen the bulls continue to strengthen their position. As long term inventors, patience is a key weapon in our arsenal. Our position is the bulls remain in control, resulting in opportunities for savvy investors, such as those in our Phoenix community.
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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