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.
Price movements on U.S. stock markets over the past week have revealed patterns pointing to weakness. Only the index comprising small-cap stocks is still maintaining its upward trend relatively well, but a weakening of buying pressure is likely here as well. Among European markets, the SXXP continues to hold up well, while the DAX’s movement clearly signals a weakening trend. In contrast, the index tracking emerging markets may enter the new week with a significant loss of momentum and a sell signal.
The upward wave failed to reach a new high two weeks ago. It left a gap down last week, which remained open, thus confirming that a downtrend may follow. Stronger support can be expected around the 6,875 level. The downward movement that has begun appears to be part of a trend, and further declines may follow.
Resistance levels: 7,500; 7,656; 7,813.
Support levels: 6,875; 6,563; 6,250; 5,937; 5,781; 5,625.
It is still above the uptrend, but the curve is poised to break below the trendline. A break below the natural support level of 28,906 could open up further room for a decline. Strong support levels are likely to be found only much lower, between 26,562 and 25,000.
Resistance levels: 30,469; 31,250.
Support levels: 28,125; 26,562; 26,172; 25,781; 25,000.
The series of steadily rising swing lows and highs has not yet been broken. On the downside, the trend line has already risen to the 2,969 level; a break below this level could trigger a reversal. A shift to a downtrend has not yet occurred. A break below the thick green trend line could lead to another downtrend.
Resistance levels: 3,043; 3,125.
Support levels: 2,813; 2,734; 2,656; 2,578; 2,500.
It’s still moving sideways, with no clear trend. As long as the small gap left above holds the index, it won’t be able to fall significantly. If the lower swing high set a week ago is not broken and the curve were to break through the rising trend line, that could be a bad sign and a pattern suggesting a decline. The first strong support level is expected around 22,438.
Resistance levels: 25,000; 25,781.
Support levels: 22,656; 21,875; 21,093; 20,313.
This index is still trending upward and has reached the 640.6 level. The ascending triangle pattern could provide even more room for the rally to extend beyond the new high. The trendline would break at 625. The next resistance level could be 656.25.
Resistance levels: 656.3; 668.
Support levels: 609; 594; 562; 546.
The decline began with a sharp gap last week, which remained open. This could mark the start of a significant correction. The downward move began with a break below 67.19. Stronger support levels are expected to be tested well below that, around 59.38. This is the top of a bullish gap, which could serve as strong support. In addition, a momentum divergence has formed, which may also signal the end of the long-side trend.
Resistance levels: 68.75; 71.88.
Support levels: 62.5; 59.38; 56.25; 50.
OTP Global Markets offers a broad range of services in the field of local and international money and capital markets.
Read morePersonal care and expertise with OTP Private Banking, along with the knowledge, security, and innovations of a multinational banking group.
Read more
