The technical outlook of Expedia is looking good
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The government crisis is over – what lies ahead for Romania?
Romania has experienced five turbulent months on the domestic political front. Nevertheless, after several prime ministerial candidates failed to secure parliamentary support, a new government was finally formed in late October. The Romanian equity market, which had performed strongly during the first half of the year, lost momentum towards the end of August and entered a downward correction in September. It then rebounded in October, partly reflecting the reduced risks of a snap election and a sovereign rating downgrade to below investment grade. While domestic political tensions have subsided, the BET index has yet to recover to the vicinity of its August peak. At the same time, Romanian equities no longer appear particularly inexpensive from a valuation perspective.
Commodities - Technical Analysis
Signs of a turnaround have emerged for gold and silver, and a strong upward move could trigger the next upward wave. A breakout above the key downtrend lines could also be on the horizon, which would further reinforce the positive turnaround. The price of oil has broken below the 100-day moving average, weakening the bullish outlook, and with the uptrend broken, it has entered a correction phase. Natural gas is showing a correction following a sharp decline, but has not yet managed to break through its downtrend line. Copper continues to trade within a wide range and is approaching the lower end of that range. Following a significant decline, wheat and corn prices have reached key support levels from which an upward correction—or even a new uptrend—is likely to begin.
The range of stocks showing upward momentum has broadened, but the number of stocks exhibiting a particularly strong technical pattern remains low. Many securities have already posted significant gains, making it increasingly difficult to find favorable entry points on a risk-reward basis. This week, one of the stocks from our Equity Top Pick List, Expedia, is beginning to form a promising technical pattern, while our other pick, the pharmaceutical company Moderna, has broken out of a long accumulation phase, opening up significant room for further gains.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Moderna (daily): It broke out of the downtrend nearly a year ago, but only a slow rise was visible. The sideways movement that characterized the first half of this year can be considered an accumulation phase. It broke out of this phase upward in recent days. This is a very good sign; it’s worth buying on every retest because of this. The target price could be the gap left earlier. A minor stop could be expected around 75, while the large downward gap left open around 100 could be the ultimate target.
Expedia (daily): The online travel platform—which is also among on our Equity Top Pick List—has been added to the list of stocks with a momentum-based buy signal. The recent rally is indeed justifiable, although in the bigger picture, the stock is still in a consolidation phase from which it may soon break out. A break above 265 could signal a breakout from the pattern and open up upside potential. If it closes below 218, it’s worth managing the risk. The target price would be above 312 in the event of a breakout above 265.
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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