European markets have been relative laggards in recent weeks; however, during the correction they reached key support levels from which a strong buying response emerged. Based on the momentum factor model screening, the leading stocks in Europe are primarily coming from the technology sector. This week, we analyze two charts: Infineon Technologies, one of Europe’s largest semiconductor manufacturers, and Nemetschek, a leading software company driving the digitalization of the construction industry.
Among U.S. indices, the S&P 500 and the Nasdaq have remained in an uptrend, but this situation could easily become vulnerable. Given the high price levels near all-time highs, increased risk management is recommended. In contrast, the Russell 2000 had already been looking weak; it reached an important support level, which stalled and even slightly reversed the trend, but this does not yet indicate a sustained turnaround. The DAX and the STOXX Europe 600 moved markedly against their U.S. counterparts, performing particularly poorly in recent weeks. However, they have also reached their first significant support levels. Meanwhile, the Emerging Markets Index continues to consolidate below a key resistance level.
The BUX index broke its rising market structure last week, suggesting that the prolonged upward wave may have come to an end. MOL has also remained in correction phase since the dividend payment and has now fallen below the 5,000 level, leaving the next significant support considerably lower. Richter found support around 12,180, but no convincing reversal signal has been confirmed yet. Magyar Telekom continues to trade within an increasingly narrow range, with a high-momentum session likely needed to provide short-term direction. Opus remains in a downtrend. Rába is also moving within a broad trading range, although another upward wave could develop later if the necessary technical conditions are met.
The uptrend broke down last week when the index fell below 146,875. At the same time, the trendline broke downward, thus breaking the long-term uptrend. Due to short-term oversold conditions, a retest may occur, a situation that could even be suitable for looking to enter a short position. The smaller the increase, the better it may be from the perspective of opening a short position.
Resistance levels: 153,125; 156,250.
Support levels: 143,750; 140,625; 137,500; 134,375; 131,250.
After the dividend payment, a correction began, which has already caused the price to fall below the 5,000 level. The correction could push 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; as long as it isn’t broken, going long doesn’t seem like a good idea.
Resistance levels: 5,438; 5,625.
Support levels: 4,580; 4,375; 4,062; 3,906; 3,750; 3,438.
This stock is also in a correction phase at the minor natural support level of 12,180. If it does not fall below this level, it should still produce some kind of reversal pattern or a higher low for a long position. A reversal of the downtrend is expected later, so it’s worth looking to buy 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 share price remains locked in a very tight consolidation range between 2,500 and 2,578, with the range continuing to narrow. A move out of this zone would likely be needed to trigger the next meaningful price swing. A break below the range could pave the way for another downward wave, while a close above 2,578 would improve the chances of a rise. .
Resistance levels: 2,578; 2,656; 2,734; 2,813.
Support levels: 2,500; 2,375; 2,250.
Increasing volatility has become evident, but the formation of a new low means the downtrend remains intact and the stock has yet to reverse. A close above 281 could trigger a break of the red trendline. Until a strong bullish session accompanied by significant volume emerges, the prevailing bearish structure is unlikely to change.
Resistance levels: 312; 344; 375; 406; 438.
Support levels: 250; 219; 188.
The minor uptrend stalled at the 3,750 level last week, and the price fell to a new swing low. As a result, the price continues to consolidate between the two trend lines. The red trend line is likely to hold for a few more weeks; a break above it would truly 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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