Uber and Mosaic Are Showing Signs of a Reversal
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Ford and Mosaic Are Showing Signs of a Turnaround
U.S. markets remain stretched, so the number of momentum-based trading opportunities has declined significantly. As a result, it is becoming increasingly difficult to find high-quality stocks poised for an uptrend. Today’s analysis once again features Mosaic, one of the world’s largest fertilizer manufacturers, and Ford Motor Company. We recommended Mosaic stock two weeks ago, but at that time we made the buy recommendation contingent on certain conditions being met. Those conditions have since been met, so it’s worth keeping a close eye on the stock and looking for entry opportunities. In the case of Ford, further confirmation is needed; however, the current risk-reward ratio appears favorable, so this stock may also be added to the list of long-term investment opportunities.
Hungarian Equities - Technical Analysis
After reaching the 150,000-point level, the index began to correct. However, for a meaningful short position to develop, the long-term uptrend line would also need to be broken. MOL’s share price rose steadily to the 5,000 forint level, where it had become significantly overbought, triggering a correction. Richter climbed back toward its previous all-time high before turning downward from there. Magyar Telekom’s share price showed a slight rise from the 2,500 forint level; however, if it were to remain below 2,656 forint for an extended period, this could signal a strong reversal. Opus continues to move within a downtrend, and there are no clear signs of a reversal forming at this time. Following a sharp rise, Rába is currently in a consolidation phase. It is worth looking for new long entry opportunities after a deeper retest, particularly in the range below 3,125 forints.
As momentum in the market’s leading sectors begins to moderate, high-quality laggards are increasingly moving into focus. In today’s technical analysis, we highlight two stocks that are showing encouraging signs following several months of accumulation: Uber, which is also included on our Equity Top Pick List and Mosaic, one of the world’s largest fertilizer producers. We examine the technical setup and key price levels for both stocks.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Mosaic (daily): The stock has posted three consecutive days of strong gains. From a longer-term perspective, this is highly encouraging, although it has not yet broken above the 25 level. However, it has left upside gaps behind and appears to be preparing for a reversal following a prolonged accumulation phase. The chart is now suitable for buying on pullbacks. The minimum expected price target is around 31.25, though higher levels may become visible later on.
Uber (daily): After an extended period of sideways trading, the stock has shown several strong buying days followed by consolidation. The buying wave was not followed by concentrated selling pressure, which points to a potential trend reversal. The stock has not fallen back below 75 for a week, and that level has now turned into support, which is a positive sign and increases the likelihood of a sustained reversal. The minimum price target is 87.5, but the stock could also move toward the 94 area.
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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