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.
Major U.S. indices are in consolidation phases. Signals may soon emerge from these consolidation phases. Since there were upward trends prior to this, the odds may favor a continued rally. All of the European indices analyzed have broken out to the upside, opening up significant upside potential, so it may be worth looking for long entries. In contrast, the index tracking emerging markets is characterized by a short-term downtrend but is approaching key support levels.
The index is moving within a consolidation phase, which was preceded by a rally. As long as it remains above the thick green uptrend line, there may be a greater chance of further gains. We haven’t yet seen a candle indicating the next direction; we’re waiting for a signal to see which way the index will attempt to move. Stronger support is expected around the 6,875 level.
Resistance levels: 7,500; 7,656; 7,813.
Support levels: 6,875; 6,563; 6,250; 5,937; 5,781; 5,625.
It’s still above the uptrend, but this movement is already very close to the edge. If the higher swing lows were to break, a correction could follow. However, it could even attempt to move higher out of this consolidation, but for that to happen, the curve would need to rise today. Above 30,469, 31,250 could be the next level. Below the natural support level of 28,906, there could be room for a decline. Strong support levels are likely to be found 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.
The index broke out of its sideways pattern at the end of last week. This generated a long signal and opened the door for an uptrend. There could be significant upside potential, so it might be worth looking for long positions even during a pullback. A close below 25,000 would be a failure.
Resistance levels: 25,781; 26,562.
Support levels: 22,656; 21,875; 21,093; 20,313.
This index has also broken out of its several-week-long sideways movement. The 640.6 level is now a support level; it shouldn’t fall below this. The ascending triangle pattern could provide even more room for the rally, so it may still be worth looking for long entries. The trendline is set to break at 640 soon.
Resistance levels: 656.3; 668.
Support levels: 625; 609; 594; 562; 546.
The decline began with a sharp drop two weeks ago and is currently characterized by a downward trend in the short term. Stronger support levels around 62.5 and 59.38 are expected to be tested.
Resistance levels: 68.75; 71.88.
Support levels: 62.5; 59.38; 56.25; 53.13; 50.
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