The U.S. oil company is once again showing positive signs
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European Software Companies Are Set to Make a Comeback
European stock markets are currently outperforming their U.S. counterparts, and thanks to the gains of the past few days, our screenings have identified a number of interesting stocks. Among these, we have highlighted stocks that have recently shown signs of a structural turnaround, while strengthening buying pressure is also supporting the positive technical picture. One such company is Germany’s Nemetschek, a leading provider of construction and architectural design software. The other is the Dutch firm Wolters Kluwer, which offers professional information, software, and specialized database solutions. For both stocks, the search for long entry opportunities may have begun.
The downturn on U.S. stock markets at the end of last week had a significant impact on opportunities identified based on momentum. In such situations, the number of stocks that meet the screening criteria drops sharply, as we saw a broad-based decline. Nevertheless, it’s always possible to find stocks that are resilient to the downturn. This week, EOG Resources’ chart offers cause for optimism. The stock is also among our Equity Top Pick List, so there’s a good chance it will be able to withstand the correction phase thanks to its favorable fundamentals, and the technical picture may also support the start of a long-term uptrend.
Best rated US stocks based on momentum ranking
Compelling technical picture:
EOG Resources (daily): After a consolidation phase, it begins to turn upward. Both the magnitude and duration of the correction could be nearly perfect for a rally to begin. It could really open up above 143.75, but since there is a gap to the upside and a strong bullish candle below it, the risk can be kept tight (a close below 131.25), and based on the trend-confirming pattern, 162.5 could even be reached—and $175 could also come into play. This could qualify as an entry with an appropriate risk-reward ratio.
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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