🚀 Wall Street Radar: Stocks to Watch Next Week
💼 Volume 21: 🌍 Growth vs. Value: Where the Market Momentum Lies
Friday’s market action was brutal, with significant losses across the board, though the indexes managed to claw back some ground by the close. Over the past three weeks, we’ve witnessed a clear deterioration beneath the surface, with small-cap stocks bearing the brunt of the selloff.
Currently, the market is at a critical juncture: will we see a lower high signaling a deeper correction, or a higher low paving the way for new highs? This transition phase demands caution, as the next two weeks will be pivotal in determining the market’s direction. Rather than predicting, it’s essential to stay reactive and adapt to evolving conditions. Patience and vigilance are key in navigating this uncertain environment.
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T2118
The T2118 index showed some resilience earlier in the week with a modest bounce but resumed its selloff on Friday, signaling continued weakness.
The last time the T2118 index fell below 15.00 was in September 2023, a period that marked one of the final legs lower for the market before a notable bounce occurred. Historically, readings under 30 have indicated oversold conditions, but the most compelling buy signals have emerged when the index drops below 10.00.
The broader market uptrend remains intact as long as the index stays above its 50-day moving average (50 MA). However, small caps have already lost this key support level, so the focus has to stay on mid and large caps. These segments of the market are now critical to determining the market's direction as we approach the beginning of the new year.
T2108
The T2108 index mirrored the sensitivity seen in T2118, with a brief bounce near the 25 level earlier in the week, only to resume its selloff by Friday. This pattern reflects the ongoing pressure on the market, as the index struggles to find stability at key levels.
The 4% Bull-Bear indicator provides some reassurance, showing that Friday’s selloff did not cause as much damage as the sharp decline on December 18. The red bar for Friday is notably smaller, suggesting that while selling pressure persists, it has not reached the intensity of the earlier, more brutal selloff.
On a longer-term basis, the 25% Q Bull-Bear indicator shows that bulls remain slightly in control. While the long-term trend has been damaged, it is still holding onto a cautiously bullish stance. This suggests that the market has not yet transitioned into a fully bearish phase, even as short-term volatility continues to dominate.
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🎢 High-Volatility Thrill Rides
MIND: Mind Technology Inc
What they do: Ocean technology solutions provider
Why watch? 🌊 Recent 70%+ run following strong earnings with impressive 21% QoQ revenue growth. New high-tech products showing significant market traction with 2-3 quarters of backlog revenue. Financial momentum is particularly strong with increasing operating margins and a $1 per share annual EBITDA run rate, complemented by positive cash flow. The technical setup suggests potential continuation above $8.00 after consolidation, though a few more days of sideways movement would create an ideal entry point.
CDXS: Codexis Inc
What they do: Protein engineering platform company
Why watch? 🧬 Testing critical 4.70-4.80 weekly support with falling wedge formation on the daily chart, suggesting potential reversal setup. The technical pattern shows promising consolidation with decreasing volume, typically a precursor to significant moves.
AGFY: Agrify Corporation
What they do: Advanced cultivation solutions provider
Why watch? 🌱 Low float setup with heightened volatility potential. Price action compressed between 10 and 20 EMA with extremely low volume, suggesting imminent movement. Key breakout level at $40.00 could trigger substantial momentum given the tight technical formation.
CRNC: Cerence Inc
What they do: Automotive AI solutions provider
Why watch? 🚗 Strong Q4 results exceeded guidance with $6.1M positive operating cash flow. The transformation plan progressing well with projected $35-40M net annualized cost savings. Notable achievement of 22 platform launches including 6 GenAI solutions demonstrates strong innovation momentum. Currently consolidating under $9.00 on low volume, suggesting a potential accumulation phase.
NVNI: Nvni Group Limited
What they do: Technology solutions provider
Why watch? 📊 Speculative play showing constructive low-volume pullback. The technical setup suggests a potential breakout if the price maintains above $3.20 weekly support and successfully breaks the current channel formation.
🏄♂️ Medium-Risk Wave Riders
RBRK: Rubrik Inc
What they do: Data security solutions provider
Why watch? 🔒 Strong earnings beat with raised full-year guidance, driven by robust demand for data security solutions. Currently displaying healthy consolidation on low volume with solid technical support from both 10 and 20 EMAs, suggesting institutional accumulation.
MITK: Mitek Systems Inc
What they do: Digital identity verification provider
Why watch? 🔐 Strong revenue growth and profitability improvements in Q4 and full fiscal year 2024. The company's global leadership in digital identity verification positions it well in the growing digital security sector. Consolidating under $11.50 with notably superior relative strength against major indices, indicating institutional interest.
ANF: Abercrombie & Fitch Co
What they do: Retail apparel company
Why watch? 👕 Impressive Volume Contraction Pattern (VCP) formation since August on the weekly chart, showing increasingly tight price action. Strategic entry zone between $150-160, with major breakout potential above $160 on increased volume. The extended base-building period suggests potential for significant movement once resistance is cleared.
🛡️ Low-Risk Safe Harbors
RBLX: Roblox Corp
What they do: Gaming platform provider
Why watch? 🎮 Constructive low-volume consolidation with strong support from both 10 and 20 EMAs. Cup & Handle formation on the daily chart suggests accumulation, with $60 representing the key breakout level for potential momentum acceleration.
YPF: YPF Sociedad Anonima
What they do: Argentine energy company
Why watch? ⛽ Impressive 100% recent gain amid Argentina's economic reforms under the Milei administration. 50% government ownership provides stability while operating in a recovering sector. Currently showing remarkably tight price action above $42 support, suggesting continued institutional interest despite the significant run-up.
GAMB: Gambling.com Group Ltd
What they do: Sports betting analytics provider
Why watch? 🎲 Strong momentum following strategic OddsJam acquisition announcement, driving 18% single-day gain on heavy volume. $160M deal expected to close January 2025 significantly expands recurring revenue potential. The technical setup suggests continued momentum following this fundamental catalyst.
TBLA: Taboola.com Ltd
What they do: Digital advertising platform
Why watch? 📱 Impressive Cup & Handle formation visible on both daily and weekly timeframes, suggesting sustained accumulation. Price action above $3.70 support is critical for maintaining bullish momentum and triggering the next leg up.
ESTC: Elastic NV
What they do: Enterprise search solutions provider
Why watch? 🔍 Post-earnings consolidation near 20 EMA showing healthy price action with a falling wedge pattern. The technical setup suggests a potential breakout, supported by a strong fundamental backdrop in the enterprise search and observability space.
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Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always conduct your research and consult with a licensed financial advisor before making investment decisions.