It is anticipated that the major benchmark indexes will begin trading for the week on a little more optimistic tone, with both the Nasdaq and S&P500 charts up over the last five days.
While investors continued to focus on the interest rate policy of the Federal Reserve and a jump in China stocks due to an easing of Covid-19 restrictions in the nation, Finbold, meanwhile, has identified and evaluated the charts of three equities that closed the previous week with gains and are likely to experience heavy trading on Monday, December 5.
Nio (NYSE: NIO)
Investors in Chinese stocks will be pleased after local governments across the country relaxed some of the most stringent measures they had been enforcing to prevent the spread of the Covid-19 virus.
Nio finished at $13.13 +$1.04 (+8.6%) at the closing bell on Friday. In the last month, NIO has been trading in the $9.14 – $13.32 range and is currently trading near the high of this range.
The long-term trend is negative, but the short-term trend is good; thus, traders and investors increasingly appreciate the stock. However, prices have been rising strongly lately, so it may be prudent to wait for a consolidation or pullback before considering an entry.
A combination of multiple trend lines and important moving averages in numerous time frames forms a resistance zone ranging from $13.14 to $13.30. Notably, Nio monthly deliveries in November hit record numbers as China eased its Covid policy.
SolarEdge Technologies Inc (NASDAQ: SEDG)
SolarEdge closed at $308.77 +$13 (+4.4%) on Friday and is up +$97.47 (46.13%) over the last month. SEDG is presently showing a bull flag pattern which occurs when prices pull back slightly after a substantial rise, so this may be a nice opportunity for an entry.
Support is located at $307.08 from a trend line in the daily time frame, and a resistance zone from $308.78 to $309.19 is formed by a combination of multiple trend lines. Notably, SEDG was trading above all simple moving averages (SMA) at the time of publication.
Last but not least, it is anticipated that the company’s profits will experience an acceleration, which the company’s strong earnings retention will likely support.
Lufax Holding Ltd (NYSE: LU)
Lufax closed last week at $1.96 +$0.22 (+12.64%), with the technology-empowered personal financial services platform in China boosted by the easing of the nation’s Covid policy. Despite last week’s gains, the firm took a hit when Morgan Stanley (NYSE: MS) analyst Richard Xu cut Lufax stock from overweight to equal weight owing to concerns about credit quality.
LU has been trading in the $1.26 – $2.39 range in the last month. It is currently trading in the middle of this range, so some resistance may be found above. Resistance is identified at $3.69 from a trend line in the weekly time frame, while support is located at $1.40 from a horizontal line in the daily time frame.
Volume has been considerably higher in the last couple of days, and the price movement has been too volatile to find a solid entry and exit point; it is probably a good idea to wait for a consolidation first.
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