The Channel Tunnel Business Remains Highly Profitable.
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Südzucker: Trading Idea closing
In recent weeks, there was a significant price increase in the sugar market, about which we have been fairly optimistic previously. This is primarily due to the fact that supply may be tighter as a result of higher biofuel prices and drier-than-usual weather in India. This was, of course, a positive development for companies such as Südzucker, which is one of the world’s largest sugar producers and a leading European player in biofuel production. As a result, the company’s stock price also jumped, reaching our previously set target price of 12.9 euros during yesterday’s trading, hence it may be worth realizing the roughly 15% return achieved in 1.5 months. While we are closing our Trading Idea, we are still keeping Südzucker’s shares on our Equity Top Pick List.
Hungarian Equities - Technical Analysis
The index has reached and surpassed the psychological 150,000 level in a healthy uptrend. A slight momentum divergence has emerged, but there is still no sign of a structural trend reversal. MOL has steadily climbed to the 5,000 level; although no reversal pattern is visible, the stock has become significantly overbought. Richter generated a buy signal morethan two weeks ago and has since retested its previous high, with no bearish reversal pattern evident so far. Magyar Telekom has been pulled back byprofit-taking toward the 2,500 area, but as long as it fails to break above its declining trendline, the correction may continue. In the case of 4iG, the share price has broken its downtrend and subsequently retested it, increasing the probability of a trend reversal. Rába broke its downtrend with a strong upward move and then reached a key historical resistance level at 4,375, which once again pushed the price lower. Technically, new long positions should be considered after a deeper pullback.
Industrial stocks have started to outperform in recent days. Among them, we selected the French transportation and infrastructure company Getlink SE, which primarily operates the Channel Tunnel (Eurotunnel) beneath the English Channel, connecting France and the United Kingdom. Its chart is showing an upside breakout following an extended period of consolidation.
Best rated European stocks based on momentum ranking
Compelling technical picture:
Getlink SE (daily): From a technical standpoint, the stock appears to be breaking out to the upside after a prolonged accumulation phase. The risk level is well defined, as the price has rebounded from its lows along a clearly identifiable rising green trendline. The price target can be placed near the important natural resistance level around 21.88. A close below 18.75 would invalidate the bullish scenario, in which case exiting long positions would be advisable.
List of stocks with a chance of a turnaround in the coming weeks
Most popular European 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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