German Healthcare Giant Shows Signs of a Comeback.
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Hungarian Equities - Technical Analysis
The BUX index broke out of its uptrend last week and underwent a sharp correction, which may be followed by some retesting. MOL’s share price found minor support but is still in a correction. Richter stalled at the 12,180 level, but a bullish day signaling a reversal has not yet occurred. Magyar Telekom’s share price remains narrow, a day with a strong move could provide short-term direction. Opus is still in a downtrend; a reversal is still pending. Rába continued to trade within a narrow range; another upward wave could follow later if conditions are right.
One Step Closer to a New World: Brazil
Elections were held in Brazil in early October, during which Flávio Bolsonaro, the challenger to incumbent President Lula, performed better. The second round of the presidential election will follow in late October, when it will be decided which of the two will become Brazil’s next president. Currently, Flávio Bolsonaro appears to be the favorite to win, and based on market reactions, investors may already started pricing in this scenario. If Flávio Bolsonaro is elected president, it could pave the way for the fiscal turnaround anticipated by market participants, and relations between Brazil and the United States could also improve, which over time could even lead to lower Brazilian tariffs.
European markets seemed to be struggling in recent weeks, but following the declines, patterns suggesting a correction have emerged on the indices, with an increasing number of stocks signaling a possible turnaround. However, the technical charts of the companies on the list still do not reflect clear trading opportunities. For this reason, this week we are analyzing one stock from the momentum list: Siemens Healthineers. The company is part of the Siemens Group and is one of the world’s leading manufacturers of medical devices.
Best rated European stocks based on momentum ranking
Compelling technical picture:
Siemens Healthineers (daily): We are seeing a shift in the longer-term downtrend. The bounce following the sideways movement around 34.38 already hinted that a change was underway, but the recent breakout from the 37.5 level indicates that buyers may have taken control. Risk management can be handled by closing below 37.5 euros. A close above 40.6 euros could open up upside potential, with the 43.75–50 zone becoming a target. Even in the event of a retest, it may be worth looking for a long entry as long as the price remains above 37.5.
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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