Wed, June 26, 2024 | 4:47PM ET

Super SMID Granny Shot Technicals - June 2024

Name: FS Insight
Price range: $$$

Mark L. Newton, CMT ^AC

Head of Technical Strategy

Super SMID Granny Shot Technicals - June 2024

I’ll be on Fox Business with Charles Payne tomorrow, Thursday, June 27th at 2:00 pm ET

Equity trend should be close to finding a bottom and turning back higher to new highs into July after just a minor three-day pullback in Technology. Broader market performance has proven impressive in the last week, and should be a driving reason why Stock indices continue to push higher in the month of July. DXY and TNX look close to breaking down, and likely trend lower into September. Overall, despite Tuesday’s resumption in Technology strength while the broader stock market showed more weakness, I expect to see Sectors like Healthcare, Financials, Consumer Discretionary and Industrials build on recent strength to rally in the month of July. SPX along with QQQ trends remain bullish and supportive of a push higher to near 5700 in SPX, and it’s thought that mid-July could prove to be more important than mid-June.

Below are the technical writeups for this month’s Super SMID Granny Shot selections, listed in no particular order:

Agilysys (AGYS – 100.05)

-AGYS has gotten more attractive following the May breakout back to new highs followed by its consolidation back to test the pivot area of the breakout.

-Weekly momentum has turned back positive as a result of this past week’s gains and RSI levels are not overbought on weekly timeframes.

-Rallies back to test and exceed May highs look likely with targets found at $116 which approximates the recent high to low range of its recent base projected higher, along with an Equal-length projection of the May rally.

AGYS

NAPCO Security Technologies (NSSC – 51.02)

Ongoing uptrend of higher highs and higher lows remains intact for NSSC with little evidence of deterioration.

Despite some churning in price since mid-May, this has not adversely affected NSSC’s pattern.

Weekly momentum remains bullish and not overbought, and gains up to $60 look possible.

Strong support lies near $46 which is an area near prior February peaks and also aligns with the current uptrend.

NSSC

Cirrus Logic (CRUS – 126.86)

One of the strongest technically ranked members within the current SMID Granny List, CRUS has been steadily gaining strength following its rally back above March peaks to new highs.

While daily and weekly RSI have reached overbought levels, monthly RSI is not yet overbought, despite a doubling in price from last Fall’s lows.

CRUS broke out of a lengthy base which had been building since 2019 following its successful breakout of 1995 and 2017 highs.

Resistance targets lie near $140, which likely could mark a temporary peak ahead of consolidation into August. However, CRUS still looks to have upside of 7-10% following this breakout with little to no resistance.

Support should materialize on any weakness near $117 and provide entries for a push higher to $140.

CRUS

Wingstop (WING – 422.64)

WING is quite bullish despite being extended following its 161% rally off last Fall’s lows.

Despite some minor negative momentum divergence on weekly charts, WING has shown no evidence of trend failure, and momentum remains strong after four straight weeks of gains, and nine of the last 10 months of gains higher.

Upside resistance should materialize near $450 and monthly DeMark exhaustion signals remain incomplete but could materialize on strength into August.

Pullbacks should prove to be buying opportunities near last week’s $401.42 low and only a break of $395 would serve to postpone the rally.

WING

Amkor Technology (AMKR – 39.09)

AMKR remains an excellent technical risk/reward following a technical breakout back to new highs followed by its consolidation since June peaks.

AMKR’s breakout last December 2023 managed to exceed a 2.5 year technical base that had been building. This was a very bullish development that’s helped the rally off the 2020 lows to accelerate.

On a monthly basis, the long-term AMKR base had been building for 20 years until its breakout in 2021. AMKR has now reached the 61.8% Fibonacci retracement of the entire decline from 2000 peaks.

Resistance lies near $50-$52 and above that would allow for a rally back to challenge those former all-time highs which lie near $65.

AMKR looks to be bottoming after its recent consolidation, but further price weakness would find strong support near $35 before turning back to new highs.

AMKR

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Mark L. Newton, CMT, the research analyst denoted by an “AC” on the cover of this report, hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships. Neither I, nor a member of my household is an officer, director, or advisory board member of the issuer(s) or has another significant affiliation with the issuer(s) that is/are the subject of this research report. There is a possibility that we will from time to time have long or short positions in, and buy or sell, the securities or derivatives, if any, referred to in this research.

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