Are airline stocks taking off again?
Related content
AI Could Be the New Profit Driver for Digital Platforms
In recent years, artificial intelligence has become one of the most important topics in the technology sector. While much of the attention is focused on model developers and companies providing infrastructure, the long-term winners in this technology may also emerge on the application side. The interactive media segment is particularly interesting from this perspective, as the business models of companies operating in this field rely heavily on monetizing user attention and producing digital content. In the second part of our industry analysis series, we review current trends and potential catalysts affecting search engines and social media platforms.
European Software Companies Are Set to Make a Comeback
European stock markets are currently outperforming their U.S. counterparts, and thanks to the gains of the past few days, our screenings have identified a number of interesting stocks. Among these, we have highlighted stocks that have recently shown signs of a structural turnaround, while strengthening buying pressure is also supporting the positive technical picture. One such company is Germany’s Nemetschek, a leading provider of construction and architectural design software. The other is the Dutch firm Wolters Kluwer, which offers professional information, software, and specialized database solutions. For both stocks, the search for long entry opportunities may have begun.
The improvement in market sentiment has had a positive effect on stocks that have already passed the accumulation phase. In recent days, the share prices of several airlines have started to rise after a prolonged correction. In today's analysis, we look at two of these companies that appear particularly promising: Delta Air Lines and United Airlines.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Delta Air Lines (daily): After a sufficiently long sideways movement, the price broke out upwards in recent days. Breaking above 62.5 indicates strength in the stock. The initial risk management level is 56.25, but later it is worth adjusting the exit point to the thick, ideal upward trend line. The pattern that has formed predicts a new high (81.25), but at least the previous high (68.75) is expected to be reached.
United Airlines (daily): This curve shows a slightly more favorable picture, with the 112.5 level being a key resistance, but the buy signal arrived yesterday. The risk should initially be managed by breaking through the 87.5 level. If we see a trend-reinforcing pattern and manage to break through the 112.5 level, this could open the way for a further significant rise. In this case, the target price could reach as high as 137.5.
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.
Get more out of your investments!
Global Markets Services
OTP Global Markets offers a broad range of services in the field of local and international money and capital markets.
Read morePrivate Banking Services
Personal care and expertise with OTP Private Banking, along with the knowledge, security, and innovations of a multinational banking group.
Read more