Gen Digital once again delivered better-than-expected quarterly results, while management also struck a more optimistic tone regarding the outlook. The company raised its FY2027 profit guidance above analyst expectations. Investors were also encouraged by comments from the CEO indicating that there are currently no plans for any major acquisitions, following earlier speculation about a potential takeover of GoDaddy, which many viewed as a sizeable and potentially risky deal. After being heavily sold off in recent months on these rumors, the stock reacted positively. Technically, the share price has once again reached the upper end of its multi-year trading range, which could act as a significant resistance level. However, given the improving fundamentals, we are raising our multiples based previous target price from $32 to $35 per share. Gen Digital shares remain on our Equity Top pick List.
The Fertilizer Producer’s Chart May Be Showing Promise Again After a Long Time
Despite the sharp decline, a number of previously underperforming, lagging stocks are showing signs of life. At the same time, for these stocks, we have seen almost without exception only initial, concentrated buying reactions over the past few months. However, a sustained turnaround would require the formation of higher lows and the confirmation of clear reversal patterns. In light of this, it is worth monitoring the stocks listed in the first table on a daily basis, as additional positive trading days accompanied by rising volume could significantly increase the likelihood of an emerging uptrend. We’ve selected two companies from the long list. One is Take-Two Interactive Software, which, moreover, is set to release its quarterly earnings today after the market closes, while Grand Theft Auto VI—eagerly anticipated by investors and gamers alike—is scheduled for release in ten days. The other stock we’re highlighting is Mosaic Company, one of the world’s largest fertilizer manufacturers, which is also showing an increasing number of positive technical signals following a significant drop in its stock price.
The dollar’s overall trend continues to point toward a weakening, but this picture must be reinforced by further depreciation in the coming days; otherwise, a reversal could easily occur. The forint has reached its target price against the euro, so sideways movement is likely in the short term; against the dollar, the downward trend may persist if the dollar begins to weaken again. In the case of the USD/JPY currency pair, the resistance level at 159.38 has been confirmed, which raises the risk of a break in the longer-term uptrend. Meanwhile, signs of a slow, gradual upward turn may be emerging in the EUR/CHF exchange rate.
EURUSD
EURUSD
Trading continued along the main uptrend line. The curve is under pressure because it must either break below the natural support level at 1.1719 or move above 1.1781 in line with the trend—possibly as early as today—to maintain the trend. If it breaks below 1.1719, the path toward the 1.1597 level could open up. Above 1.1781, the target price could be around the previous high. The thick green trend line is therefore an important support level and could also serve as a risk management level.
Despite yesterday’s bearish candle, the uptrend is not yet in jeopardy. The 1.3428 level could serve as a dividing line between the long and short sides. The thick green trendline could also serve as a risk management level as it rises. The short-term target remains around 1.3672, but due to the higher low, the February high could also be in play.
The calculated value was reached by testing the 355 level. This makes trading on a further strengthening of the forint riskier relative to the potential return. A minor correction may occur, but the curve is likely to remain below 375. Until a structural shift occurs, there is no point in expecting a trend reversal.
Resistance levels: 375; 382,8; 390,6. Support levels: 355.5; 351.5.
USDHUF
USDHUF
After hitting a new low, it has remained in a downtrend. There is still room for further declines, but of course this would require the dollar to weaken as well. The trend-confirming pattern could even push the price down to around 281. Until a structural shift occurs, going long does not seem like a good idea.
The main trend is upward, as indicated by the thin green trendline. Yen buying above the 159.38 level creates a strong barrier and reinforces the zone above it as resistance. The exchange rate has stuck to the level around 156.25, so the 153.13 level also appears to be a potential retest.
Unless the slight downward trend breaks to a new low, it appears to be shifting toward an upward pattern. However, if it breaks above the 0.9277 level, a move toward the 0.94 area would be expected. The longer-term structure has not yet changed, so the upside potential remains limited; however, a higher low could signal a significant shift later on.
Resistance levels: 0.9399; 0.9521; 0.9644. Support levels: 0.9155; 0.9033; 0.8911.
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