Tesla could also join the rally
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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.
We found a wide range of stocks joining the rally on U.S. exchanges. The energy sector is still leading the way, but after a significant rally, it’s difficult to find stocks with strong technical patterns. One of the stocks from our Equity Top Pick list began a technical turnaround, so we took a closer look at First Solar’s chart. Another stock that may be on the verge of a turnaround is Tesla. After a long correction phase, its downtrend may be breaking.
Best rated US stocks based on momentum ranking
Compelling technical picture:
First Solar (daily): After a prolonged correction phase, it gave a buy signal at the end of last week. Quarterly earnings no longer influence the curve, so the technical picture appears clear, with a chance of an uptrend to previous breakout levels (the zone between 250 and 265.6 may be reachable). It is advisable to set the initial stop-loss at the 187.5 level.
Tesla (daily): After a prolonged correction phase, it has moved to the top of the momentum list and is showing buying strength. It was a very positive sign that it did not break below the 343.75 level and that a strong upward reaction emerged from there a month ago. This may have laid the groundwork for further long opportunities. A trend-like rise could follow above the thick red trendline. It is advisable to initially set the stop-loss at the 359 level, and then, if a breakout does occur later, raise the stop-loss in line with the established trend.
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.
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