Autohome gearing up for an extended rally.

Autohome gearing up for an extended rally

Friday’s unemployment figures came out with mixed results as NFP missed expectations, however with Average Hourly earnings and the Unemployment Rate coming in significantly better than expected we saw parabolic movements in both directions. The vast improvement in the unemployment rate might be a significant sign that the federal government sees as substantial progress, as the 5% unemployment rate was broken for the first time since the pandemic started, the unemployment rate improved to 4.8%. Tapering should be set to be announced by the Fed during the course of next month’s FOMC meeting. The FOMC meeting minutes are due this week and would be a catalyst with regards to the Feds plans for their monetary policy for the rest of the year as well as the first quarter of next year.

Friday’s movers:

Stocks to watch:

Autohome Inc (ATHM)

Autohome has been steadily recovering post its Covid selloff as it has recently been making higher highs on its way to recovering to its post covid levels. Earnings and revenue has been consistently growing and beating expectations over the last two quarters of the year, with the next quarterly earnings report due during the latter part of November, a lot of potential upside might be on the horizon if growth continues as expected.

Technically, we got a break of recent highs on Friday, with a possible retracement to test the $47 – $48 levels before an extended rally to $60 is expected.

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