The healthcare sector is performing well
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After a hot fall, a spring tornado could wreak havoc in France
Barely half a year after this year’s French budget was passed, the wrangling over the 2027 budget is about to begin, but that’s not all, because France will also hold a presidential election next spring. During the first public presidential debate, some of the radical candidates put forward ideas that were, at times, unconventional. Although the presidential election in late April still seems far off, based on the latest polls, if no candidate secures enough votes and a runoff is held, it cannot be ruled out that two radical presidential candidates will face off against each other. Market participants may have begun to price in this growing uncertainty, as the yield spread between French and German 10-year government bonds has started to widen again in recent weeks. The period ahead promises to be full of twists and turns, so it will be worth keeping a close eye on developments in French domestic politics.
Commodities - Technical Analysis
Gold and silver prices have retested their uptrend lines, so the long-term trend may continue. Oil prices have broken out of a contracting pattern, which may signal the start of another upward wave. Natural gas prices have also begun to rise, signaling a buy. In the case of copper, the main uptrend remains in effect, and there are currently no signs indicating a change in the trend’s structure. Following significant gains, wheat and corn have become heavily overbought, increasing the likelihood of a correction.
The markets have experienced significant gains, and for the past two to three weeks, a rotation has been underway from the technology sector—which had been the leader until now—toward other sectors. In recent days, the financial and healthcare sectors, in particular, have performed exceptionally well. Two major multinational companies operating in the healthcare industry met this week’s screening criteria. One is the Danish company Novo Nordisk, which is already on our Equity Top Pick List; the other is the Swiss-based Straumann Holding, one of the global leaders in dental implants, dental prosthetics, and regenerative dentistry.
Best rated European stocks based on momentum ranking
Compelling technical picture:
Novo Nordisk (daily): We’re seeing a short-term reversal on the chart, which still has room to move higher. As for target prices, there are two possibilities. The closer one is at half the size of the large gap left to the downside, while the more distant one could be expected to fill at the smaller gap that was also left to the downside earlier. In the bigger picture, a structural shift would only occur if the curve rose to around 400; at that point, the path upward would be easier, and buying on every dip would be more advisable. The chance of an uptrend would fade below the thick green trendline, meaning it would need to close below 275 initially; later, this level could rise along with the trendline.
Straumann Holding (daily): The Swiss company’s stock price is also showing signs of a turnaround; it has broken out of a long-standing downtrend, and a gap remains open below 100, which could be a favorable risk management opportunity. The decline occurred in two major waves, and with the test of 75, the two-wave correction phase is now complete. As a result, a new uptrend may be beginning; there may still be room for further gains, and in the longer term, the level around 150—which was previously an important resistance level—could be reached.
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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