Ford and Mosaic Are Showing Signs of a Turnaround
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Major markets continue to trade near their all-time highs, so there are fewer and fewer truly attractive investment opportunities. In such an environment, momentum is typically already more subdued, which calls for caution. In today’s analysis, we took a closer look at the stock of Walt Disney, one of the key players in the services sector. The stock has already experienced a long-term trend reversal, and the subsequent consolidation could lay a favorable foundation for further gains.
International Markets - Technical Analysis
Among the U.S. indices, the S&P 500 and the Nasdaq 100 remain in established uptrends, with the latter continuing to display a particularly constructive technical setup. However, given current elevated price levels, disciplined risk management remains essential. In contrast, the Russell 2000 has already undergone a structural shift and continues to trade within a downtrend. Both the DAX and the STOXX 600 also remain in declining trends, with no clear signs of a reversal emerging so far. Meanwhile, the MSCI Emerging Markets Index continues to trade below a key resistance level, although selling pressure does not appear especially significant at this stage.
U.S. markets remain stretched, so the number of momentum-based trading opportunities has declined significantly. As a result, it is becoming increasingly difficult to find high-quality stocks poised for an uptrend. Today’s analysis once again features Mosaic, one of the world’s largest fertilizer manufacturers, and Ford Motor Company. We recommended Mosaic stock two weeks ago, but at that time we made the buy recommendation contingent on certain conditions being met. Those conditions have since been met, so it’s worth keeping a close eye on the stock and looking for entry opportunities. In the case of Ford, further confirmation is needed; however, the current risk-reward ratio appears favorable, so this stock may also be added to the list of long-term investment opportunities.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Mosaic (daily): Even though this stock had already been one of the selections on the momentum-based screening list two weeks ago, it has now secured an even higher position. It managed to break above the 25 level and then retest it. We’re seeing days of accumulation, and sentiment surrounding the stock is shifting. This chart remains suitable for buying on dips. The minimum expected target price is around 31.25, but it could even go higher later on.
Ford (daily): Automotive stocks aren’t the most popular these days, yet this chart tells a different story. To begin with, the overall trend has been upward since early 2025. Within this uptrend, the target price was at least around 18.75, a level it has not yet reached. After two rallies in recent weeks, its trading range has narrowed significantly, and it is now attempting to break out upward again from this range. Risk can be managed by a close below 12.5, while the target price, upon a break above the red trendline, points to at least the aforementioned 18.75 area, where a gap awaits filling.
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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