Only Consumer staples stocks are thriving
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European Software Companies Are Set to Make a Comeback
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.
We are still finding stocks showing significant strength primarily in the basic consumer goods sector. The sector gained momentum last week and has since had a particularly strong week, with many companies joining in. During the week, Molson Coors Beverage and Target shares showed strong buying confirmation.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Molson Coors Beverage (daily): The paper had already broken the downward trend earlier, but only now has it really confirmed the upward trend. After retesting the 50 level, it has reached a new swing high in recent days. The 56.25-59.38 level could easily be reached. The risk should be managed along the thin green upward trend line.
Target (daily): The stock had already broken its downward trend earlier, but it is performing very well, as we only saw a retest around 100 and since then it has run to a new swing high. There is a weaker level around 125, but strong resistance is expected at the 150 level, which could be a longer-term target. The rising green trend line could be the risk management level, and if it breaks, the long wave could end.
List of stocks with a chance of a turnaround in the coming weeks
Not a single paper met the screening criteria this week.
Most popular US 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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