The general negative mood does not even favor the defensive players
Related content
Commodities - Technical Analysis
The prices of the two precious metals corrected higher, reaching their downtrend lines, from which they turned downward again. These charts still do not offer significant long opportunities. Oil, on the other hand, broke through the minor corrective trend line and has resumed its upward trajectory. A return to the previous price level around 120 is also a possibility. The price of natural gas may currently test the downward trend line before turning upward. Copper has reached the expected level where its longer-term upward trend was extending, so it has also begun an upward correction. Wheat and corn prices appear to be consolidating as long as their key support levels remain intact.
Alibaba: a short-term burden can become a driving force later on
Alibaba reported quarterly results in March that fell short of expectations; fierce competition in e-commerce continues to weigh on profitability, despite strong performance in the cloud business. Looking ahead, however, the situation may be on a path to gradual improvement, while new launches continue to roll out in AI services, which could represent significant business potential for the coming years. The market still does not price this in at current price levels, so even if heavy capex spending have a negative impact on performance in the short term, the company may be able to outgrow this over time. Moreover, due to the decline in share prices over the past few months, valuation levels are now more favorable, so we are maintaining the stock on our Equity Top Pick List.
Companies operating in the energy sector continue to top the list, but most of these stocks have already risen significantly, so there are no favorable long entry points in relation to the risks. Last Friday, the major markets broke through their previous lows and ranges, so they appear to be more open to downward movement. Due to general risk aversion, our weekly recommendation does not include any individual stocks, but we have listed those stocks that, based on their relative strength, remain at the forefront of all the instruments examined.
Best rated US stocks based on momentum ranking
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.
Get more out of your investments!
Global Markets Services
OTP Global Markets offers a broad range of services in the field of local and international money and capital markets.
Read morePrivate Banking Services
Personal care and expertise with OTP Private Banking, along with the knowledge, security, and innovations of a multinational banking group.
Read more