Several sectors are showing signs of a turnaround
Related content
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.
As the technology sector—which had been the market leader until now—began to correct, other sectors are already picking up the baton. In recent days, real estate, healthcare, and financial companies have outperformed or at least remained stable, suggesting that a turnaround may be underway for some previously underperforming stocks. Signs of a turnaround are visible, for example, in Mid-America Apartment Communities, which owns and operates residential properties, and Aon, which operates in the fields of risk management, insurance brokerage, and human resources solutions.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Mid-America Apartment (daily): The recent rally over the past few days may have marked the end of a longer-term consolidation pattern. By breaking above 131.25, this level has become an excellent support and, at the same time, a short-term risk management level. The long entry point could be below 140 at current prices. The target price could reach last year’s high above 168.75. It is advisable to manage risk later by breaking the thin green trendline.
Aon (daily): A breakout from a long-term downtrend may be on the horizon. Significant gaps have already formed to the upside (305) and, more recently, below 318. This pattern could provide very strong support from below while opening up room for an upward move. The target price could be around the previous high (406), but at least 375.
List of stocks with a chance of a turnaround in the coming weeks
The search results did not yield any matches this week.
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