Elections were held in Brazil in early October, during which Flávio Bolsonaro, the challenger to incumbent President Lula, performed better. The second round of the presidential election will follow in late October, when it will be decided which of the two will become Brazil’s next president. Currently, Flávio Bolsonaro appears to be the favorite to win, and based on market reactions, investors may already started pricing in this scenario. If Flávio Bolsonaro is elected president, it could pave the way for the fiscal turnaround anticipated by market participants, and relations between Brazil and the United States could also improve, which over time could even lead to lower Brazilian tariffs.
Südzucker, which is one of the world’s largest sugar producers and a leading player in European biofuel production, released its latest interim report, which contained both pleasant and slightly negative surprises. On the one hand, there has been a significant improvement in financial performance on an annual basis, three out of five business segments posted excellent results, and losses in the sugar production division also narrowed thanks to cost-efficiency measures. On the other hand, management raised its annual forecasts only moderately despite strong business performance, which may have disappointed some investors. However, in our view, the outlook for the sugar market remains favorable, so the sugar production segment’s profitability may improve in the coming period. Overall, we are keeping the stock on our Equity Top Pick List.
The BUX index broke out of its uptrend last week and underwent a sharp correction, which may be followed by some retesting. MOL’s share price found minor support but is still in a correction. Richter stalled at the 12,180 level, but a bullish day signaling a reversal has not yet occurred. Magyar Telekom’s share price remains narrow, a day with a strong move could provide short-term direction. Opus is still in a downtrend; a reversal is still pending. Rába continued to trade within a narrow range; another upward wave could follow later if conditions are right.
After the upward trend breaks down, we can expect a correction and a retest. The extent of this correction could reach as far as halfway down the decline. Stronger resistance may lie in the 146,875–150,000 range. As long as the curve remains below the red downward trend lines, there is a greater likelihood of range trading.
Resistance levels: 150,000; 153,125; 156,250.
Support levels: 137,500; 134,375; 131,250.
The stock remained in a correction phase. Some buying pressure emerged around the natural level of 4,844, but the trend is still downward. The correction could take the price down as far as halfway through the upward wave. For this reason, 4,530 or 4,375 are considered very strong support levels. It’s worth keeping an eye on the drawn downtrend line; until it breaks through it, going long doesn’t seem like a good idea.
Resistance levels: 5,156; 5,313; 5,438; 5,625.
Support levels: 4,580; 4,375; 4,062; 3,906; 3,750; 3,438.
This stock also continued its correction phase. There is some buying interest at the 12,180 level. Even if it does not fall below this level, it would still need to produce a reversal pattern or a higher low for a long position. A reversal of the downtrend is expected later, so it is worth looking for buying opportunities around 11,875 or at the breakout of the downtrend.
Resistance levels: 13,750; 14,375; 15,000.
Support levels: 12,180; 11,875; 11,250; 10,940; 10,625; 10,313; 10,000.
The curve is still in a very tight range between 2,500 and 2,578. It would need to break out of this range to see a minor move. If it breaks below the support level, another wave of decline could begin; however, if it closes above 2,578, it could open up the possibility of an uptrend.
Resistance levels: 2,578; 2,656; 2,734; 2,813.
Support levels: 2,500; 2,375; 2,250.
The stock continued its downward trend, and we still don’t see any significant change in this pattern. It hasn’t hit a new low, but the stock hasn’t reversed yet. If it closes above 281, it could break through the red trend line. Until we see a strong up day with significant volume, the downward trend will not change.
Resistance levels: 281; 312; 344; 375; 406; 438.
Support levels: 219; 188.
It is still consolidating and holding the level around 3,125, which is a positive sign. The narrowing between the two trend lines could continue for weeks. A break above the red trend line could open up further upside potential.
Resistance levels: 3,750; 4,375; 5000.
Support levels: 2,500; 1,875; 1,563; 1,250.
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