After a long weekend, traders are back at their desks this morning. We expect an increase in volume in the coming sessions as most traders come back from their summer holidays. Historically, the week after the Labour Day break is characterized by profit taking, as most investors decide to book their summer gains and look for opportunities starting from next week. With Asian and European markets strong yesterday, we are cautiously bullish going into today’s action. After the weaker than expected Jobs report on Friday, tech had a strong bid and we are confident in this sector moving forward. Talks of inflation, interest rate hikes and tapering might take a pause.
Please see below the most important charts of the day!
The tech sector is in focus after it had a strong bid on Friday on news of a disappointing jobs report. For today it will be important to keep above 379.20. Pivot resistance is at 381.98. See which stocks within the sector have an early bid as futures point to a strong start in the US markets. The action from last week created a bull flag on the chart which might suggest higher prices in the future.
After a recent downtrend and sideways channel, $AMD managed to reverse on Friday as it reclaimed Thursday’s low. With chips in the news daily, we expect this stock to outperform. Careful adding on strength, but keep this stock on your radar if it manages to clear 112. It needs to defend 108.5.
The social media giant has been one of the best performing FAANG type stocks of 2021. It entered a downtrend last week as it became extended from the moving averages. With Friday’s reversal it looks once again appealing. It needs to clear 377.55 for better action.
With crypto strong over the weekend, and El Salvador officially adopting Bitcoin as legal tender later today, keep this stock on your radar. We believe that it will clear 294 in the coming sessions if crypto stays strong. Careful adding on any strength as the correlation between crypto prices and this stock is not always linear. 270 is pivot support with 280.61 as pivot resistance.
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