Ford may break out after sideways movement
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US bank shares fell
The third-quarter earnings season in the US has picked up pace following the release of the latest figures from US banks. Based on preliminary expectations, the third quarter is likely to have closed with strong earnings growth for S&P 500 companies, led by the energy and technology sectors. The major US banks have still achieved solid growth on an annual basis, indicating that their operations remain strong, but the pace has clearly slowed in many cases, which has tended to result in negative share price reactions.
Commodities - Technical Analysis
Gold and silver continued their downward trend, bouncing off key levels. Until their downward trends are broken, they will not be able to produce a significant rise. The fall in oil prices reversed from the $87.5 level and began a slight upward movement. Natural gas remained in an uptrend; a significant rise could even occur if it breaks out upwards. The price of copper has become stuck in a wider range, so the oversold and overbought zones may offer more favourable trading opportunities. The falling prices of wheat and corn have reached key support levels; a buying reaction from these levels could present favourable long opportunities with limited risk.
All it takes is a single day of sharp declines on the U.S. stock markets for momentum-driven upside opportunities to evaporate. Of course, it’s always possible to find stocks that outperform the market, but the quality of these outperformers can vary greatly. We’re highlighting two stocks from today’s list. One is Zebra Technologies, and the other is Ford Motor.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Zebra Technologies (daily): The long-term downtrend line could break in the coming days. It’s a positive sign that there’s an upward gap, so a close below 218 could serve as the initial risk management level if the gap is filled. The minimum target price could be around 312, but the gap open at 406 could also become a target price later on.
Ford Motor (daily): It is showing signs of life after a very long sideways trend. The movement below 14 can also be described as an accumulation phase. We have already seen a strong rally in recent days, so buying around the 12.5 level during pullbacks may be advisable. It is advisable to manage risk by exiting the position if the thick green trendline is broken.
List of stocks with a chance of a turnaround in the coming weeks
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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