Comfort Systems USA (FIX: NYSE)

Comfort Systems USA, a mechanical and electrical engineering company specializing in HVAC services, is poised to benefit from several robust macroeconomic trends. The upward trajectory in nonresidential construction, which began in 2017 and regained momentum post-pandemic, is a key driver. This resurgence, particularly in manufacturing construction, has been significantly bolstered by the CHIPS and Science Act of 2022. Even when adjusted for inflation, this spending boom presents substantial opportunities for Comfort Systems.

The CHIPS Act and ongoing global supply chain challenges have underscored the importance of local sourcing, especially for critical technologies like semiconductors. Comfort Systems is well-positioned to capitalize on the increased demand for locally sourced supplies, benefiting from the strategic push for self-sufficiency.

Geopolitical and demographic shifts further support a bullish outlook for Comfort Systems. Advances in industrial software and automation have made reshoring and investments in high-labor-cost countries viable. Additionally, rising geopolitical tensions have highlighted the necessity for investment in domestic technological capabilities.

Considering these favorable conditions, we are bullish on FIX above $275.00-$277.00, with an upside target of $445.00-$450.00.

Cadence Design Systems (CDNS: NASDAQ)

Cadence Design Systems, a leading designer of computer software, hardware, and reusable circuits, is well-positioned for sustained growth due to its recent technological advancements and strategic market position. In early February, Cadence announced the Millennium M1, a new supercomputer system powered by GPUs from leading providers, likely including Nvidia. This collaboration is expected to gradually enhance Cadence’s stock value, establishing a long-term uptrend.

As a key player in the semiconductor design software market, Cadence, along with Synopsys, dominates the EDA (electronic design automation) sector. However, Cadence’s superior financial health and profit margins provide a competitive edge. While Synopsys focuses on integrating its recent acquisitions, Cadence has the opportunity to strengthen its market dominance.

CEO Anirudh Devgan expressed optimism about the company’s future during the 2023 earnings release, highlighting exceptional results driven by innovative solutions and the Intelligent System Design strategy. He emphasized the significant opportunities in AI and 3D-IC, areas where Cadence aims to leverage its technological leadership to maintain business momentum.

Given these favorable conditions, we are bullish on CDNS above $285.00-$288.00, with an upside target of $400.00-$405.00.

Ethereum (ETHUSDT)

ETH has shown strong performance against BTC, with the ETH/BTC chart attempting to break a significant monthly downtrend. A clear break above this trendline could trigger a substantial bullish move for ETH. Against USD, ETH is currently facing a major resistance band around $3,500. A break above this level would likely attract significant bullish interest and momentum.

Key support levels to watch for ETH are $3,380, $3,330, and $3,250. These levels could provide a safety net if the price faces any pullbacks. As ETH approaches these critical levels, traders should closely monitor price action and volume to gauge the strength of any potential breakout or rejection.

Overall, the market dynamics suggest that ETH is on the verge of a decisive move. If it manages to break through the resistance, it could lead to a strong upward trend, but traders should remain vigilant and manage their risk, especially near the identified support levels.

Pepe (PEPEUSDT)

PEPE has settled on a solid horizontal support following its initial pump earlier this week. If the market remains bullish, this zone could serve as a launchpad for PEPE to move higher. Ideally, traders should look for weakness into the entry box to minimize stop loss risk, but the current setup offers a favorable risk-reward ratio.

Entering a trade between $0.0000121 and $0.00001226 provides a strategic opportunity. If this level is lost, the next high conviction zone to consider is around $0.00001135. It’s crucial to monitor this area closely and adjust positions accordingly.

Take profit targets are set at $0.0000129 and $0.000014, with a stop loss placed at a close below $0.00001207 to ensure proper risk management.