The SP 500 Is Still Consolidating After Making a New Record High on November 9th

Article By: ,  Financial Analyst

The S&P 500 Is Still Consolidating After Making a New Record High on November 9th

On Tuesday, Autodesk (ADSK) is anticipated to release third quarter EPS of $0.96 vs $0.78 last year on revenue of $941.8 million compared to 842.7 million a year ago. Autodesk is an application software company and on November 17th, the Co announced that it signed a definitive agreement to acquire Spacemaker, a company that uses cloud-based artificial intelligence (AI) software to analyze and design real estate, for 240 million dollars. The deal is expected to close during Autodesk's fourth quarter of fiscal year 2021, ending January 31, 2021. Looking at a daily chart, 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 $249.32 and $242.07). We are looking at the final target of $288.20 with a stop-loss set at $242.20.  

Also on Tuesday, Hormel Foods (HRL) is expected to announce fourth quarter EPS of $0.44 compared to $0.47 a year ago on revenue of $2.6 billion vs $2.5 billion the year before. The Co produces meat and food products, and its current analyst consensus rating is 1 buy, 9 holds and 3 sells, according to Bloomberg. From a technical point of view, the RSI is below its neutrality area at 50. The MACD is positive and below its signal line. The MACD must penetrate its zero line to expect further downside. Moreover, the stock is trading under its 20 day MA ($50.23) but above its 50 day MA ($49.52). We are looking at the final target of $46.30 with a stop-loss set at $51.70.

Additionally on Tuesday, Gap (GPS) is likely to unveil third quarter EPS of $0.30 vs $0.53 last year on revenue of $3.8 billion compared to $4.0 billion a year ago. The Co retails apparel, accessories, and personal-care products, and on November 11th, Afterpay, the leader in buy now, pay later, financing products announced a partnership with the Co to bring flexible spending to Old Navy, Gap, Banana Republic and Athleta customers just before the holidays. From a chartist's point of view, the RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is above its 20 and 50 day MA (respectively at $21.95 and $19.75). We are looking at the final target of $29.50 with a stop-loss set at $22.30.

On Wednesday, Deere (DE) is awaited to post fourth quarter EPS of $1.32 compared to $2.14 a year ago on revenue of $7.6 billion vs $8.7 billion last year. The Co is the world's leading manufacturer of agricultural equipment and its stock price is anticipated to move up or down by 6.5% based on options volatility. The stock rose 4.4% after the Co last reported earnings. Technically speaking, the RSI is above 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is above its 20 and 50 day MA (respectively at $243.99 and $233.71). We are looking at the final target of $281.90 with a stop-loss set at $245.80.

Looking at the S&P 500 CFD on a 1 hour chart, the index is still consolidating after making an all-time high of 3,673.90 on Monday, November 9th. The simple moving averages (SMA) are set-up in mixed manner, with the 200-preiod SMA above 20-period SMA and the 20-period SMA above the 50-period SMA, The Index will probably continue to bounce around inbetween 3,518.00 and 3,674.00 until a breakout occurs. If price can breakout to the upside of 3,674.00, then price should rally towards the first Fibonacci target of 3,794.00. If price can reach 3,794.00, then the next target would be 3,856.00. On the other hand, if price breaks below 3,518.00, then traders should look to 3,463.00 for support. If price cannot hold above 3,463.00, then there is a chance that price could bounce off of 3,403.00.        



Source: GAIN Capital, TradingView

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