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
S&P 500
The monthly candle for April closed as an indecision candle, with the price dropping to the support level around $4,822. This support level dates back to the high from January 2022. When the price hit this level, it created a strong base, finding support in April and pushing back upward. May’s candle is currently bullish, up 2.04% from the previous month. However, for the year, the S\&P 500 is still down by 3.26%. The next key targets are for the S\&P 500 to rise above $6,000, then surpass the 2024 high of $6,099, and eventually break the all-time high of $6,147 set in February.
On the weekly chart, the price is sitting just below the 50 simple moving average, which is acting as resistance and keeping the price from moving higher. If the price fails to break above this level, further declines could follow. We’ll need to see how the price reacts as the new week begins.
On the daily chart, Friday ended strongly, with the candle closing up 1.17%. Following this close, the price is continuing upward and is nearing the 200 simple moving average, which could act as strong resistance. If the price manages to break above this level, the next step is to look for a clear pattern of higher highs and higher lows as the price moves toward the all-time high.
Dow Jones
The Dow Jones is up 1.53% so far in May but remains down 2.81% for the year. After declines in April, prices are recovering and appear to be continuing the long-term upward trend as May progresses. The current all-time high of $45,073 was set in December 2024. If the price breaks above this level, further upward movement is likely.
Nasdaq 100
On the monthly time frame, the Nasdaq is up 2.63% so far in May but remains down 4.32% for the year. We’re watching for the price to continue climbing toward the all-time high of $22,222, which isn’t far above 2024’s high. This level could act as a strong resistance point. The Nasdaq has already failed to break through this level twice—once in December and again in February. Whether the next attempt will succeed remains to be seen.
FTSE 100:
The April candle closed as a reversal candle, finishing above the 2024 high of 8477. So far in May, prices have bounced off this support level and moved higher, creating a bullish candle for the month. Although we’re only two trading days in, May is currently up 1.14%, and the FTSE 100 has gained 5.12% for the year. It’s performing well and appears set to continue moving upward.
As mentioned in previous newsletters, there’s a support level at 8051 and resistance at 8477, the top of the consolidation zone. We now want to see prices use that resistance level as support, helping push prices higher. Ideally, this momentum would eventually break above the all-time high of 8908, set back in March.
Friday saw a strong push that increased prices by 1.19%. If this bullish momentum continues into the new week and throughout the month, further upside movement could be expected.
PERFORMANCE REVIEW
Berkshire Hathaway (BRK.B)
On the monthly chart, April closed with an indecision candle, while May is currently up by 1.18%. For the year, the stock has gained 19.1%, showing strong performance. It has also surpassed the 2024 high of $491, breaking above this level in February and continuing higher in March. After a steep decline in April, the stock has recovered in May and is currently hitting new record highs for the month.
From the April 3rd high, the stock dropped 14% by April 7th but found support at the daily 200 simple moving average. Since then, it has rebounded, and overall, the stock remains bullish. On Friday, the price broke and closed above the previous high, indicating a continuation of the trend with higher highs and higher lows. Ideally, a steady upward trend would now form.
Earnings are set to release on Monday, which could result in a gap up, a gap down, or no significant reaction. We’ll need to wait and see how the stock reacts to the announcement.
OUTPERFORMING ASSET FOR THE WATCHLIST
Palantir Technologies (PLTR)
This stock has been performing well, recovering strongly from the declines seen in April. In April, a large bullish candle formed, rising from a low of $66. Despite being down 12.69% in April, the stock has rebounded and is now trading comfortably above the 2024 high of $84.
Currently, May’s candle is showing bullish momentum, with the stock up 4.87% for the month and 64% for the year. However, it has yet to break the all-time high of $125, set back in February 2025. If it manages to surpass this level, further upward movement is likely.
This past week, the stock rose by 10%, with a strong bullish move of 3.61% on Friday alone. The stock is now consolidating within a range, with support at $66 and resistance at $125. It has shown strong upward movement from its lows and is getting closer to testing its all-time high.
Looking Ahead
The markets are booming—are you ready to take action? Stocks are reaching record highs, and buyer activity is driving the momentum. The big question is – will you take advantage or sit it out? Currently, 34% of U.S. stocks are trading above their 200-day moving average, a strong indicator of growth. Don’t wait—this could be your opportunity to make a move.
Keep it simple. Keep it Sublime.
The ST Team
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