Mastercard Could Rise Further
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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.
Major U.S. indices are trading in a narrower range but are still in an uptrend. Rotation toward lagging sectors continues, with many stocks attempting to break out of their corrective trends and resume their upward momentum. We’ve selected two of these that could enter a more sustained uptrend following a breakout. One is Mastercard, an American multinational payment technology and financial services company that operates one of the world’s largest credit card networks, while the other is Zebra Technologies, an American technology company primarily engaged in the development of barcode scanners, label printers, mobile data collection devices, RFID systems, and enterprise automation solutions.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Matercard (daily): Last week, the market began a explosive, trend-like rally after closing above 500. It seems to have gotten a little out of hand, but since the structural shift has already occurred, buyers can look for opportunities at more favorable levels during pullbacks (below 520). The minimum target price based on the previous high could be around 600, but there’s also a chance of new highs with a target price around 625.
Zebra Technologies (daily): It broke out of its downtrend in recent days, leaving a gap behind. A minor retest here would also provide a more favorable entry point, but even at current prices, there is potential for a decent upside return. Target prices could be in the 343–375 range, which corresponds to previous breakout levels. A close below 250 would be a failure.
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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