Momentum favours Meta
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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 U.S. equity markets are trading near all-time highs, yet broad-based market momentum remains absent. Many stocks have already posted substantial gains, and the rotation seen in recent weeks has so far resulted only in a brief catch-up rally among laggards. Individual stock stories may once again come into focus. This week, we took a closer look at Meta’s chart. On Friday, we also shared the stock as a trading idea, supported by a series of positive developments and encouraging news flow surrounding the company.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Meta (daily): A significant breakout from the downtrend occurred last week. This reversal could mark the return of a buy-the-dip environment. The $625 level may serve as the ideal retest area and, at the same time, an attractive entry point for long positions. The previous high, around $781, appears to be a realistic upside target. The stock also left an upside gap during the breakout. A controlled pullback into this gap, followed by a clear bullish reaction before the gap is fully closed, would provide additional confirmation that buyers remain in control. Such price action would reinforce the breakout thesis and improve the risk-reward profile of a potential long position.
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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