The industrial giant's stock price could rise again
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FX - Technical Analysis
The dollar’s rally is beginning to run out of steam and may turn into a correction—a weakening phase—which would mean rising trends against both the euro and the pound. The forint continues to strengthen against its major counterparts, and new lows may be reached against its key pairs. Going against the forint still does not seem like a good idea. For the USD/JPY currency pair, the target could be 162.5 above the 159.38 level. The EUR/CHF exchange rate is also trending upward; a minor upward wave has been underway since the breakout from the trend line.
Hungarian Equities - Technical Analysis
The index broke out of an almost perfect trend-confirming pattern. This pattern could still offer the entire market a chance for further gains. MOL: It has broken the uptrend and is once again hovering around the 3,750 level; it doesn’t look good for now, but a major drop isn’t on the cards. Richter: The uptrend remains intact even after the dividend cut; it needs to stay above the 11,875 level for the long-term trend to persist. Magyar Telekom: The series of higher lows remains intact; a reversal pattern has not yet emerged. Opus: An upward correction bounced off the downward trend line; it will be a long time before we see any meaningful buying opportunities again. Rába: The likelihood of a correction has increased; a higher low could signal a reversal, but this would require a strong upward move.
European markets also began to fall due to widespread profit-taking. For this reason, the model didn’t offer many opportunities. However, there is a Swiss company—one of the world’s largest manufacturers of flavors and fragrances—that gave a buy signal yesterday. Givaudan is an industry giant responsible for the flavors and fragrances we use every day (soft drinks, chocolate, perfume, shower gel, etc.), though we don’t see its name on the products. Its stock price reacted to upgrades, and the stock could turn around technically as well.
Best rated European stocks based on momentum ranking
Compelling technical picture:
Givaudan SA (daily): The long-standing downtrend has been broken, and with a gap at that. This could be a very good sign, provided it doesn’t retest the level within two days and stays above it. A sustained uptrend could begin, in which case it’s advisable to manage risk at the thick green trendline. The target price can be set around 3,750, given the gap left behind during the previous decline. Buying on dips may be recommended.
List of stocks with a chance of a turnaround in the coming weeks
Most popular European stocks
The momentum model supports the creation of a technical based stock list that helps to find shorter-term trading opportunities. The model can be used to identify stocks that show reversal signals following more sustained falls/underperformance. We examine one-year, six-month, three-month, one-month and five-day momentum values, which are used to rank the stocks under consideration. The higher a stock is ranked in the order, the better it technically performs relative to the others. The change in the ranking over time is used to determine the life cycle of the stock.
- In the first table, we collect the stocks that show the most attractive picture compared to the others in a given week based on momentum factors, of which those are also presented in a separate chart where a favourable situation can be identified based on additional technical analysis tools.
- In the second table, we list the stocks that are already worthy of being placed in watchlist status. They are not among the best performers, but they have the potential to improve and signal a turnaround in a few days or weeks.
- In the third table, we have also collected the more popular stocks to help identify their position in the momentum order.
The report shows the results of a technical - quantitative based stock screening, which does not examine the fundamental background/value of the companies. For this reason, risk management/position sizing rules should be designed accordingly.
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