In recent years, artificial intelligence has become one of the most important topics in the technology sector. While much of the attention is focused on model developers and companies providing infrastructure, the long-term winners in this technology may also emerge on the application side. The interactive media segment is particularly interesting from this perspective, as the business models of companies operating in this field rely heavily on monetizing user attention and producing digital content. In the second part of our industry analysis series, we review current trends and potential catalysts affecting search engines and social media platforms.
European stock markets are currently outperforming their U.S. counterparts, and thanks to the gains of the past few days, our screenings have identified a number of interesting stocks. Among these, we have highlighted stocks that have recently shown signs of a structural turnaround, while strengthening buying pressure is also supporting the positive technical picture. One such company is Germany’s Nemetschek, a leading provider of construction and architectural design software. The other is the Dutch firm Wolters Kluwer, which offers professional information, software, and specialized database solutions. For both stocks, the search for long entry opportunities may have begun.
A series of rising lows and highs continues to be observed on U.S. stock markets, so from a technical perspective, no structural shift has yet occurred. The only warning sign worth noting is the emergence of momentum divergences, which may indicate that the rally is running out of steam and typically precede correction phases. European stock markets have been underperforming so far, yet due to the prevailing positive market sentiment, we have primarily seen corrective movements here as well. If these markets were to break below their upward trend lines, more pronounced correction phases could follow. Overall, we may be getting closer to the development of a broader technical correction, but the first clear sell signal has not yet appeared.
The pattern of rising lows and highs remains unchanged. The 7,031 level could serve as a turning point between the long and short sides. This level would need to break down for a reversal pattern to form. On the upside, strong resistance could be found around 7,343 and 7,500. There is a very strong support zone around the midpoint of the 6,563–6,875 range (6,718), at the top of the open gap.
Resistance levels: 7,188; 7,500.
Support levels: 6,875; 6,563; 6,250; 5,937; 5,781; 5,625.
The situation has not changed; despite the new highs, the momentum indicator has begun to diverge, suggesting that buying momentum is waning. A break in the series of higher lows and higher highs would be needed to trigger a reversal. If we were to see a strong breakout, that could signal a stronger high. On the upside, there is stronger resistance around the 28,125 level. If there is a downward correction, the first strong support level is around the previous high of 26,000.
Resistance levels: 28,125; 28,924.
Support levels: 26,172; 25,781; 25,000; 24,718; 23,437; 23,301; 22,656; 22,301; 21,875.
Following the rally, we saw some minor consolidation, but not a trend reversal. Here, too, we may see movements indicating exhaustion on the long side. A break in the uptrend could bring about a change; the 2,734 level could serve as a watershed between the long and short sides. Stronger support is only found at the previous breakout point (around 2,600). Above 2,812, however, further new highs may emerge.
Resistance levels: 2,812; 2,891.
Support levels: 2,656; 2,578; 2,500; 2,343; 2,265; 2,188.
Following a minor decline, growth has resumed above the main uptrend line. There is a gap open to the downside, which could act as strong resistance. If the thin upward green trend line were to break, it could lead to a deeper retest. Stronger resistance is found around 25,000, while strong support levels are at 22,656 and 21,875.
Resistance levels: 25,000; 25,781.
Support levels: 22,656; 21,875; 21,093; 20,313.
It bottomed out at a lower peak two weeks ago. However, this decline has not yet signaled a full reversal; for that to happen, the ideal uptrend would need to break. Friday’s rally may face strong resistance around the 625 level. The 594 level serves as support. This could be a pivotal level separating the long and short sides.
Resistance levels: 625; 640.6; 656.3.
Support levels: 594; 562; 531; 515.6; 500; 484.
The uptrend has nearly reached its previous high, around the 65.63 level. This index has also become significantly overbought, and divergences indicate that momentum has slowed. A break below the rising green trendline could trigger another decline, but this would require a strong bearish candle. Support may be found at 56.25.
Resistance levels: 65.63; 67.5.
Support levels: 56.25; 50; 48.43; 46.9.
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