The European defense industry could perform well
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Forty Days of Madness on the South Korean Stock Market
The South Korean stock market posted an astonishing rise in the first half of the year, driven largely by the artificial intelligence-related semiconductor boom that benefited both Samsung and SK Hynix. As foreign investors became net sellers, the role of local retail investors has become increasingly prominent in recent times. However, the introduction of leveraged ETFs tracking a single stock further exacerbated the already mounting volatility in South Korea’s stock market. Following a sharp rally, a reversal occurred in mid-June, followed by a significant correction in July. In light of these developments, we examined what might happen next on the South Korean stock market.
Hungarian Equities - Technical Analysis
The index is approaching the 150,000 “dream threshold.” The rally that began in early June has not yet shown any signs of exhaustion or a reversal pattern, but strong resistance could bring it to a halt. MOL: The rally has continued, and the stock is now trading around 4,688. No reversal pattern is visible here either. Richter: Four days ago, it broke out of its downward correction trend and issued a buy signal again. Magyar Telekom: Following the new high, we saw stronger profit-taking; at levels above 2,800, the selling pressure appears strong. Opus: The price has broken out of the downtrend, but a break above 375 is needed for a structural shift. Rába: It remains in a downtrend; until we see a strong, high-volume up day that closes above the trendline, the direction will not be able to change. There will be no analysis next week due to vacation. The next analysis will be published on August 25, 2026.
The European defense sector has come to the forefront in our momentum-based screening list. European companies that stand to benefit from rising defense spending remain the focus of investor attention. Based on our screening, two French companies—Dassault Aviation and Thales—have come into focus. As a manufacturer of Rafale fighter jets and Falcon business jets, Dassault Aviation is a key player in the global aviation industry, while Thales is one of the leading suppliers of defense electronics, radar, communications, and cybersecurity systems. The technical outlook for both stocks has been favorable recently, and significant opportunities may arise based on the technical patterns that have formed. As a result, it may be worth keeping an eye out for long entry opportunities in these stocks in the near future.
Best rated European stocks based on momentum ranking
Compelling technical picture:
Dassault Aviation (daily): A few weeks ago, it began an upward move with a gap that it did not fill, thus sending a strong signal to the market that the curve intends to rise. It has also reached a new swing high in recent days, meaning the structure is bullish. It’s a bit overbought right now, but buying on dips may be advisable. A close below 296 would be a failure. The target price could reach a value between 343 and 375.
Thales(daily): The prolonged sideways movement may be coming to an end. It’s true that the stock hasn’t yet reached a new high, but a correction following a sharp rally—provided it doesn’t drop too low—could present a favorable entry opportunity. It should hold the 250 level in the event of a correction. If it does reach a new high, a buy signal could appear sooner. A breakout from this range could open the door to the 320–343 range.
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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