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Pinduoduo (PDD)
Entry: Unlock
Stop loss: Unlock
Price target: 153.00-156.00
Second PT: 160.00-165.00
Chart done on hourly timeframe. Pinduoduo is a Chinese online retailer that has become extremely popular in recent years thanks to their online marketplace “Temu.” The company booked 80% revenue growth in 2023, and their earnings growth continued into the first quarter of this year at 119% quarterly growth, marking a massive accomplishment for the e-commerce giant. PDD saw an influx of buyers last week following the upbeat earnings reports from AliBaba and JD, which are also based out of China, so we expect traders to continue watching this close this week. Chinese stocks are generally undervalued compared to their American counterparts, but uncertainty around China’s economy has weighed on investors sentiment. However recent developments have shown that China’s economy is improving, and earnings from other Chinese companies clearly reflect an opportunity, so as we head closer to PDD’s next earnings, which are set for 8/29, we expect buyers to continue pouring into this stock.
Please note that this may take beyond this week to come around to price targets.
Sentinel One Inc. (S)
Entry: Unlock
Stop loss: Unlock
Price target: 26.00-27.00
Chart done on hourly timeframe. The global cybersecurity market is expected to grow from its current market cap of 194B to 562B in 2032, marking a massive opportunity for cybersecurity companies who already exist in the space. Sentinel One is one of those companies, proving itself as a potential prospect for growth by continuously increasing their quarterly revenue at a double digit percentage rate over the past year. With demand for cybersecurity only growing, young companies like Sentinel One are positioned to take a piece of that demand as long as they maintain their innovation with changing times. In the short term, investors are especially paying attention to cybersecurity companies as we head closer to the election. The last election had many rumors of cyberattacks and mishaps around it, so investors will naturally gravitate towards the cybersecurity space again this time around. Rising tensions in the Middle East and between Russia and Ukraine are also a cause for the need of cybersecurity.
Please note that this may take beyond this week to come around to price targets.
Russell 2000 (IWM)
Entry: Unlock
Stop loss: Unlock
Price target: 217.00-218.00
Second PT: 222.00-225.00
Chart done on hourly timeframe. The Russell 2000 (IWM) is one of the only large indexes that has yet to reach the all time high mark this year, largely because of the uncertainty around interest rates. However recent economic developments have solidified an interest rate cut this coming September, which is good news for the small caps included in the Russell 2000. High interest rate environments are especially difficult for small caps because many of these companies require a lot of capital to develop, but as the interest rate cut grows closer, investors are likely to begin rotating capital back into these small caps, helping push the index itself higher. Last week’s inflation data helped reinforce a path to lower interest rates, and it helped markets book their best week in years, but this week we expect large caps to cool off while small caps begin to edge up, hence why we’ve placed IWM on our watchlist.
Please note that this may take beyond this week to come around to price targets.
Marathon Digital (MARA)
Entry: Unlock
Stop loss: Unlock
Price target: 17.50-18.50
Second PT: 20.00-21.00
Chart done on hourly timeframe. The crypto trade may be on its way back soon as excitement around an interest rate cut grows. High risk investments such as crypto currencies often underperform during times of high interest rates and uncertainty, but given the fact that multiple economic reports helped ease uncertainty last week, we may see some action in crypto stocks soon. Marathon Digital has been one of the most traded crypto-related stocks on the market, and we expect it to remain a top watch for high risk traders looking to capitalize on the possible crypto comeback. This is a high risk high reward speculative play.
Please note that this may take beyond this week to come around to price targets.
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The stocks posted are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. Trade at your own risk and as always, good luck! Let’s have a fantastic week.