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 on the chart is now showing signs of a reversal. It has a small bearish body with a long wick below it. Earlier in the month, the price dropped significantly to a support level around $4,822. This support was based on the high from January 2022, providing a platform where the price bounced and started to recover.

As we move through the rest of April into May, we want to see this recovery continue. If it does, the next key targets are to break above $6,000, the next major resistance level, followed by the 2024 high at $6,099, and then the all-time high from February at $6,147.

So far this year, the S&P 500 is down 6.5%, and for April, it’s down 1.62%. However, this past week ended on a bullish note, with a 4.61% gain overall. Friday’s session also closed bullish, adding 0.7%.

Dow Jones

For the year, the Dow Jones is down 5.7%, and for April alone, it has dropped 4.52%. Earlier this month, the price fell but found support at a strong previous resistance level, now acting as support, at $36,949. This level was originally formed from the January 2022 high. Price bounced back from this level and recovered, and now we’re waiting to see if the bullish momentum continues.

Nasdaq 100

Year-to-date, the Nasdaq is down 7.57 percent, but for April, it’s up slightly by 0.77 percent, showing some recovery for the month after being down earlier. If the upward trend continues, the next resistance level to watch is the 20,000 mark. Beyond that, the key levels are the 2024 high of 22,133 dollars and the all-time high of 22,222 dollars, set in February.

FTSE 100: 

In April, we see a bearish candle with a long wick that dropped to a low of 7544. Since then, the price has recovered significantly, climbing back up and now approaching the 2024 high of 8474, which is acting as a resistance level. If the price gains enough momentum to break through this resistance, the next target would be the all-time high of 8908, set last month.

Currently, the FTSE is up 2.92% for the year but down 2% for April. The price is struggling to break above 8474, and if this resistance holds, we could see further weakness and a potential decline. However, patience is key here, as momentum may pick up again and push the price past this resistance zone, moving closer to the all-time high.

PERFORMANCE REVIEW

Take-Two Interactive Software (TTWO)

This stock is showing some interesting potential. On the monthly time frame, we can see it established a strong long-term trend from August 2012 to January 2018, following an extended period of consolidation. More recently, a wide-ranging consolidation zone has been in play since February 2021, when the stock hit a high of $214. After a decline into November 2022 within this consolidation zone, the price has started to rise again.

However, the price failed to break above the all-time high of $214 in February and March 2025. April, on the other hand, has shown a strong bullish move. A close above $214 would confirm a breakout and potentially signal the start of a new long-term trend, similar to the one observed from 2012 to 2018.

If the price successfully breaks and closes above this key level, we could see a long-lasting trend that may extend for months or even over a year. It’s worth noting that longer consolidation periods often lead to more significant moves in the direction of the breakout. Given this multi-year consolidation, the strong upward move in April is promising. If this breakout is confirmed by the end of the month, it could indicate a robust move to the upside.

Additionally, the weekly candle has already broken out of the consolidation zone, closing up by 5.83%, further supporting the bullish outlook.

OUTPERFORMING ASSET FOR THE WATCHLIST

Cencora (COR)

On the monthly chart, this stock is performing well, up 27% for the year. In April alone, it has gained 2.91%. It’s trading comfortably above the 2024 high of $253.

The stock typically follows a pattern of forming strong trends, entering long periods of consolidation, and then breaking out again. It broke out of a consolidation zone and resistance in November 2024, again later that month, and once more at the start of this year. Momentum began picking up in March, with the stock steadily climbing while using the daily 20 simple moving average as support.

Friday’s session closed bullish, with the stock rising 1.19%. Moving into the new week, we’re looking for this momentum to continue. The key level to watch is the all-time high of $296, set on April 4th. A break and close above this level would signal further upside potential.

Looking Ahead

The markets remain strong, maintaining their upward momentum. Buyers are in control, and stocks are hitting record highs again. Currently, 29% of U.S. stocks are trading above their 200-day simple moving average.

Keep it simple. Keep it Sublime.

The ST Team

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