Buying power is lacking on European stock markets
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The prices of the two precious metals corrected higher, reaching their downtrend lines, from which they turned downward again. These charts still do not offer significant long opportunities. Oil, on the other hand, broke through the minor corrective trend line and has resumed its upward trajectory. A return to the previous price level around 120 is also a possibility. The price of natural gas may currently test the downward trend line before turning upward. Copper has reached the expected level where its longer-term upward trend was extending, so it has also begun an upward correction. Wheat and corn prices appear to be consolidating as long as their key support levels remain intact.
Alibaba: a short-term burden can become a driving force later on
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Major European stock markets are down by a few percentage points, leaving gaps to the downward, and trends are pointing in that direction. The movements are trend-like, so there is momentum in the decline. The drop is affecting all sectors to a greater or lesser extent, so there are no signs of buying interest or a pattern suggesting a turnaround in European stocks either. The screening results yielded a Portuguese retail chain and two energy companies, but based on the charts, entry points are no longer ideal; they may only be targets in the event of retests.
Best rated European stocks based on momentum ranking
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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