The S&P 500 Continues to Advance
Jason Lubin August 31, 2020 10:45 PM
Major earnings to look out for in the first week of September.
On Wednesday, Five Below (FIVE) is awaited to post second quarter EPS of $0.15 compared to $0.51 a year ago on sales of $414.2 million vs $417.4 million last year. The Co operates a chain of value-oriented retail stores and its stock price is anticipated to move up or down by 9.4% based on options volatility. The stock jumped 9.4% after they last reported earnings. Technically speaking, the RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at $108.86 and $108.13). We are looking at the final target of $125.00 with a stop-loss set at $107.00.
Additionally on Wednesday, Guidewire Software (GWRE) is likely to unveil fourth quarter EPS of $0.45 vs $0.56 last year on revenue of $209.0 million compared to $207.9 million a year ago. The Co provides software solutions for property and casualty insurers, and during August Social Discovery and VPay joined the Co's PartnerConnect Solution alliance program which increases the Co's business value by developing and delivering additional features to their products. From a chartist's point of view, the RSI is above its neutrality area at 50. The MACD is negative and below its signal line. The penetration of 50 on the RSI should trigger further losses. Moreover, the share stands above its 20 day MA ($111.94) but below its 50 day MA ($113.44). We are looking at the final target of $99.10 with a stop-loss set at $118.30.
On Thursday, Broadcom (AVGO) is expected to announce third quarter EPS of $5.21 compared to $5.16 a year ago on revenue of $5.8 billion vs $5.5 billion last year. The Co develops a range of semiconductors and its current analyst consensus rating is 26 buys, 6 holds and 0 sells, according to Bloomberg. From a technical point of view, the RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the stock is above its 20 and 50 day MA (respectively at $330.69 and $319.87). We are looking at the final target of $361.00 with a stop-loss set at $330.00.
Also on Thursday, Ciena (CIEN) is anticipated to release third quarter EPS of $0.82 vs $0.71 last year on sales of $972.0 million compared to $960.6 million a year ago. The Co develops networking systems, software and offers professional services, and on August 10th Windstream, a provider of voice and data network communications, revealed that it will be using the Co's photonic, coherent optical and intelligent software platforms to build its National Converged Optical Network. Looking at a daily chart, the RSI is below its neutrality area at 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the share stands below its 20 and 50 day MA (respectively at $59.39 and $56.79). We are looking at the final target of $52.00 with a stop-loss set at $58.90.
Looking at the S&P 500 CFD on a 30 minute chart, the index made a new record high of 3526.00 during the Asian market session late Sunday evening. The index has slighted pulled back since, but the trend is your friend and price will likely pop back up to retest the 3526.00 high. If price can break above 3526.00, then it will probably head towards 3574.00, the first Fibonacci extension level. If price can break through the first extension level, the next target is the second extension level at 3599.00. However, if price continues to fall traders could look to the 3483.00 support level for a bounce. If price cannot manage to hold above 3483.00, then a possible rebound could occur at the 3451.00 support level.
Source: GAIN Capital, TradingView
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