Market Forecast for the Week of July 6th and Earnings Releases to Watch Out for
Jason Lubin July 6, 2020 11:06 AM
Can the market keep running?
On Tuesday, Paychex (PAYX) is awaited to post 4Q EPS of $0.60 vs. $0.63 the prior year on revenue of $910.9M compared to $980.4M last year. The Co provides payroll services and its current analyst consensus rating is 2 buys, 16 holds and 2 sells, according to Bloomberg. Technically speaking, the RSI is above 50. The MACD is positive and below its signal line. The stock could retrace in the short term. Moreover, the stock is above its 20 and 50 day MA (respectively at $75.33 and $70.86). We are looking at the final target of $86.60 with a stop-loss set at $72.20.
Also on Tuesday, Levi Strauss (LEVI) is anticipated to release 2Q LPS of $0.45 vs. an EPS of $0.17 the prior year on revenue of $592.0M compared to $1.3B last year. The Co designs and sells a variety of clothing products and on June 27th, the Co made the decision to halt all of its ads on Facebook and Instagram, according to Bloomberg. From a chartist's point of view, the RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the stock is below its 20 day MA ($13.91) but above its 50 day MA ($13.38). We are looking at the final target of $10.90 with a stop-loss set at $15.30.
On Thursday, Walgreens Boots Alliance (WBA) is expected to announce 3Q EPS of $1.21 vs. $1.47 the prior year on revenue of $34.3B compared to $34.6B in the year before. The Co operates a chain of retail pharmacies that also offer general goods and on June 30th, the Co announced an expansion of its partnership with Microsoft (MSFT) and Adobe (ADBE) in order to launch the second phase of its digital transformation to combine health and technology. The Co plans to use data from over 100 million members of its loyalty program to create personalized healthcare and retail offerings specific to each customer based on their previous purchases. From a technical point of view, the RSI is below 50. The MACD is below its signal line and negative. The configuration is negative. Moreover, the stock is trading under its 20 day MA ($42.71) but above its 50 day MA ($42.06). We are looking at the final target of $35.50 with a stop-loss set at $44.80.
Additionally on Thursday, Helen of Troy (HELE) is likely to unveil 1Q EPS of $1.39 vs. $2.06 the prior year on revenue of $347.0M compared to $376.3M last year. The Co produces a wide range of consumer brand-name products and its current analyst consensus rating is 5 buys, 0 holds and 0 sells, according to Bloomberg. Looking at a daily chart, 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 $182.17 and $173.26). We are looking at the final target of $211.20 with a stop-loss set at $178.60.
Looking at the S&P 500 CFD, the index has been advancing in a rising channel since it broke to the upside of a descending channel last week on June 30th. The index has used its 50-period moving average as rough support inside of the strong short-term up trend. Price is expected to continue rising inside the channel until it reaches its 3192 level. Price is expected to find strong resistance at the 3192 level, however if it breaks through it will open a path to the most recent high around 3233. If price cannot hold above the lower trend line of the ascending channel pattern then we can expect price to fall back down to the 3115 support level. If price reaches the 3115 level it would most likely set the stage for lots of downward momentum to continue to depress the market back down to its 3073 support level.
Source: GAIN Capital, TradingView
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