A Former Renewable Energy Sector Star Could Be Staging a Comeback
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Hungarian Equities - Technical Analysis
The BUX index has rebounded to a level where, if the right conditions are met, a favorable shorting opportunity could arise again. MOL’s share price continues to follow a downward trend, and until this trend is broken, a sustained, trend-following rally is unlikely. Richter is moving within an ascending triangle pattern and is currently near its lower leg. If it forms a higher low, this could support the possibility of building additional long positions. Magyar Telekom has been in an uptrend for a month now, and there are no clear signs of a top yet. Opus continues to trade in a downtrend; no technical signals indicating a reversal have emerged yet. Rába continued its narrowing range and is getting closer and closer to the point where it is expected to break out of the pattern.
Gen Digital: another strong earnings report
Gen Digital once again delivered better-than-expected quarterly results, while management also struck a more optimistic tone regarding the outlook. The company raised its FY2027 profit guidance above analyst expectations. Investors were also encouraged by comments from the CEO indicating that there are currently no plans for any major acquisitions, following earlier speculation about a potential takeover of GoDaddy, which many viewed as a sizeable and potentially risky deal. After being heavily sold off in recent months on these rumors, the stock reacted positively. Technically, the share price has once again reached the upper end of its multi-year trading range, which could act as a significant resistance level. However, given the improving fundamentals, we are raising our multiples based previous target price from $32 to $35 per share. Gen Digital shares remain on our Equity Top pick List.
European stock markets continue to trade near their highs. The sharp correction that hit technology stocks in the United States in recent days has had virtually no impact on European markets, which continue to show remarkable stability. In the wake of the U.S. midterm elections, stocks in the renewable energy sector have also begun to rally. As a result, the Danish energy company Oersted, one of the world’s leading renewable energy producers—particularly in the field of offshore wind power—has made it onto our weekly list. A longer-term turnaround in the stock’s price may be taking shape, while the technical picture suggests an upside opportunity with a particularly favorable risk-reward ratio. If this potential trend reversal is successfully confirmed, significant upside potential could open up in the coming period.
Best rated European stocks based on momentum ranking
Compelling technical picture:
Oersted (daily): Its long-term downtrend had already broken in early 2026; at that time, a breakout above 137.5 drove the stock all the way up to the 170 range, after which, as the trend ran out of steam, another correction phase began. During the pullback, however, the price did not reach a new low, which may indicate an important structural change and an improvement in the longer-term trend. Following the U.S. midterm elections, another favorable turnaround occurred: the downtrend was broken, and the price rose back above 137.5 with a gap. The gap that formed has remained open for now, which is a positive sign from a technical perspective. An ideal long entry opportunity could arise following a minor correction, especially if the exchange rate were to partially fill or approach the gap, followed by a strong buying reaction from that level. In the shorter term, the level around 175 emerges as the primary target price. If the price were to sustain a break above the 175 resistance level, a more significant reversal pattern could be triggered, which would carry further substantial upside potential. In the longer term, the 250 range could even become attainable. It is advisable to manage the risk of the position with a stop-loss level placed below the thin green trendline. Currently, this would mean a close below 131; later, this level may rise.
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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