Signs of a turnaround at Polish retail company
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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.
Stock markets have been highly volatile in recent days. As we have seen significant declines in the markets, the model hardly gives any results at such times, as most stocks are down and momentum is pointing downward. Nevertheless, one stock may be worth taking a closer look at, as it looks good and shows a turnaround in its curve. This is Dino Polska, one of Poland's most dynamically growing food retail chains.
Best rated European stocks based on momentum ranking
Compelling technical picture:
Dino Polska (daily): After a downward trend, we can see a turnaround in the curve. The breakout happened two weeks ago, and after a retest, it reached a new swing high yesterday. This is a good sign, as we can see strength on the buy side and the movement looks like a trend-like rise. The target could be around 50, which was the previous breakout level.
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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