It might be worth keeping an eye on this recruitment giant
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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.
European stock markets have yet to find their footing, with trading over the past few days characterized by a narrow range. We did not find any stocks with a truly strong technical picture that would signal a buy today. Instead, we took a closer look at a stock from the list where, under certain conditions, we might find a good long entry opportunity. Randstad, a Dutch multinational HR and staffing firm—one of the world’s largest, and according to several sources, the largest staffing agency by revenue—has recently seen a turnaround in its stock price. If it retests this level, it would be worth watching for long signals, as there may still be room for an uptrend to develop.
Best rated European stocks based on momentum ranking
Compelling technical picture:
Randstad (daily): It showed a significant change when it broke above 25 and, after retesting that level, began to move higher. Currently, the price has already moved up slightly, so we would wait for a retest before entering a long position. In the 28.1–31.25 zone, an oversold situation could present a favorable opportunity for a long position. It’s advisable to manage risk using the thick green trendline. There’s plenty of room to move higher; the swing high around 43.75 could be the target price, which served as an important support level years ago before turning into resistance.
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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