The entertainment industry giant could rise again
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International Markets - Technical Analysis
Among the U.S. indices, the S&P 500 and the Nasdaq 100 remain in established uptrends, with the latter continuing to display a particularly constructive technical setup. However, given current elevated price levels, disciplined risk management remains essential. In contrast, the Russell 2000 has already undergone a structural shift and continues to trade within a downtrend. Both the DAX and the STOXX 600 also remain in declining trends, with no clear signs of a reversal emerging so far. Meanwhile, the MSCI Emerging Markets Index continues to trade below a key resistance level, although selling pressure does not appear especially significant at this stage.
Our Equity Top Pick List
We have updated our Equity Top Pick List to reflect the events of the past quarter. The list includes those stocks, typically US and European ones, that we consider to be proper investment choices from a fundamental point of view. It can provide a starting point for building a sector-diversified equity exposure in portfolios, but can also be used as a watch list. Technical analysis should be used to time / determine the specific investment decision.
Major markets continue to trade near their all-time highs, so there are fewer and fewer truly attractive investment opportunities. In such an environment, momentum is typically already more subdued, which calls for caution. In today’s analysis, we took a closer look at the stock of Walt Disney, one of the key players in the services sector. The stock has already experienced a long-term trend reversal, and the subsequent consolidation could lay a favorable foundation for further gains.
Best rated US stocks based on momentum ranking
Compelling technical picture:
Walt Disney (daily): After breaking the long-term downtrend, the chart is poised to complete a trend-confirming pattern. The pullback from the 112.5 level can be considered a consolidation phase so far, as the price has managed to stay above 100, and the number of trading days spent in the correction appears to be appropriate in terms of duration. At current prices, the 100 level may serve as a risk management threshold; this level must not be breached for the upside potential to remain intact. Based on the pattern, the target price could reach 125.
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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