Seeing the fall in the price of gold, investors eased their grief with Pepsi.
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After a hot fall, a spring tornado could wreak havoc in France
Barely half a year after this year’s French budget was passed, the wrangling over the 2027 budget is about to begin, but that’s not all, because France will also hold a presidential election next spring. During the first public presidential debate, some of the radical candidates put forward ideas that were, at times, unconventional. Although the presidential election in late April still seems far off, based on the latest polls, if no candidate secures enough votes and a runoff is held, it cannot be ruled out that two radical presidential candidates will face off against each other. Market participants may have begun to price in this growing uncertainty, as the yield spread between French and German 10-year government bonds has started to widen again in recent weeks. The period ahead promises to be full of twists and turns, so it will be worth keeping a close eye on developments in French domestic politics.
Commodities - Technical Analysis
Gold and silver prices have retested their uptrend lines, so the long-term trend may continue. Oil prices have broken out of a contracting pattern, which may signal the start of another upward wave. Natural gas prices have also begun to rise, signaling a buy. In the case of copper, the main uptrend remains in effect, and there are currently no signs indicating a change in the trend’s structure. Following significant gains, wheat and corn have become heavily overbought, increasing the likelihood of a correction.
The decline that began at the end of last week generated significant downward momentum, causing a sharp fall in the price of many stocks. Nevertheless, there are still some relatively attractive stocks in the energy and consumer staples sectors. Pepsi's share price may even show signs of a turnaround in the coming days, which could be bought at a more favorable risk after a retest. In addition, EOG Resources, which was sent out as a trading idea last week, could start rising again after a confirming candle.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Pepsico (daily): The recent rise, due to the new swing high, indicates a favorable change in the downward trend. 143.75 is now support and should not be breached; this could be the risk management level. Buying on retests may be recommended. The target price can be assumed to be around 168.75-175.
EOG Resources (daily): Favorable price development can be seen in the downward trend; closing above 112.5 could send a really strong buy signal. With risk management, the thin green trend line can be followed. The minimum expected target price is 125, but the previous peak could also be in the cards.
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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