The chart of the American chipmaker looks promising.
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Micron: profits soared at an incredible pace
The earnings report from the largest U.S. memory chip manufacturer was met with heightened expectations after industry players became the biggest beneficiaries of the expansion of AI infrastructure. However, the results published after the market closed yesterday still exceeded expectations and were accompanied by a similarly strong forecast. In addition, management outlined a favorable long-term outlook, based on which it is not yet clear when the balance between supply and demand in the industry might be restored. In light of this, we continue to view the company’s fundamental outlook as strong and are maintaining it on our Equity Top Pick list.
Commodities - Technical Analysis
Gold and silver continued their correction, breaking through key support levels, which could push back the likelihood of a turnaround by several weeks. Oil’s correction is slowly approaching its first significant support level, so the market’s reaction to this zone will be crucial. The rapid rise in natural gas prices has already stalled, but the price remains above the uptrend line. Copper is likely to trade within a wider range, so oversold and overbought zones could present trading opportunities. Wheat and corn prices continued to move within a correction phase, so no new buy signals have emerged yet.
The major U.S. stock indices are trading near their all-time highs, so truly attractive investment opportunities remain scarce. At present, only the technology sector is generating positive signals based on momentum indicators. Most other sectors continue to underperform, lacking strength and exhibiting corrective price action. In such an environment, strict risk management remains essential, even for stocks within sectors that still show potential. In today's analysis, we take a closer look at shares of the semiconductor company Texas Instruments.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Texas Instruments (Daily Chart):
Following a three-month correction, the stock resumed its upward move last week. On Friday, it also opened with a bullish gap. A break below the 250 level could serve as a risk management threshold, while the upside remains open toward new all-time highs. The target zone can be identified between 343 and 375 per share.
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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