Global stocks: Super stocks for the new year

Published December 18, 2019

As we move into the new year within two weeks' time, it is a good time to review investments and shuffle portfolios while browsing through stocks to exclude losing stocks while including stocks that show possibility of favourable return in the near future.

Below is a list of a few stocks from the S&P 500 (US Exchange) and CAC 40 (France-based Exchange). It is not unusual that we cover US markets, but possibly unusual that we look at the French market. Reason being that both markets are very much in the news; the US for the impeachment of the President, while there are pension related issues in France. Despite the big issues in both these markets, their stock indices are hitting new highs. S&P 500 is at its all time high and closing positive for the fifth day in a row at 3192.52 points. CAC 40 on the other hand is at a multi-year high at 5968 points, 200 points shy of its 2007 high of 6168 points.

Goldman Sachs Grp., In (GS.US500) Close: 231.15

Goldman Sachs Grp., Inc. is in a rising trend channel in all time frames; short, medium and long term. This shows that investors over time have bought the stock at higher prices and indicates good development for the company. The stock has given a positive signal from a rectangle formation by a break up through resistance at 224 dollars. Further rise to 254 or more is signalled.

There is no resistance in the price chart and further rise is indicated. In case of a negative reaction, the stock has support at approximately 222 dollars. Positive volume balance, with high volume on days of rising prices and low volume on days of falling prices, strengthens the stock in the short term. The stock is overall assessed as technically positive for the medium term.

Investtech's outlook (one to six months): Positive

Best Buy (BBY.US500) Close: 86.36

After being in a sideways trend for over nine months, Best Buy stock has given a price breakout from a rectangle formation via a break above the ceiling of the formation at 82.33 dollars. The price target from the formation is at 102 dollars.

The price has a good chance of reaching the target or rising above it as the price rise is supported by positive volume balance and momentum indicators. There is no resistance as the stock is at its all time high, while there is support around 77.50 and 75 dollars.

Investtech's outlook (one to six months): Positive

United Health Grp. (UNH.US500) Close: 290.47

Similar to the previous stock chart, United Health Grp. has given a price breakout from a rectangle formation which was under development for a year. The stock has also broken above multiple resistance levels at 271 and 287 dollars which should now act as support in case of any price reaction on the downside.

Target from the price formation is 326 dollars and the stock can easily rise above that level. The rise in price is supported by very strong positive volume balance and momentum. It suggests that more and more investors have shown interest in buying the stock in the past few weeks. Further rise in United Health Grp. is suggested.

Investtech's outlook (one to six months): Positive

Boeing CO. (The) (BA.US500) Close: 327.00

Boeing does not show any clear trend either in the medium or long term charts. The stock is between support at 320 dollars and resistance at 337. A definitive break through of one of these levels predicts the new direction.

The stock has been in news as it freezes the manufacturing of its 727 Max jets. Hence it would be interesting to see where the stock is headed as the year 2019 comes to an end.

Negative volume balance weakens the stock in the short term. RSI below 30 shows that the momentum of the stock is strongly negative in the short term. The stock is assessed as technically weak negative due to negative development in the momentum and volume indicators.

Investtech's outlook (one to six months): Weak Negative

Societe Generale SA (GLE.CAC40) Close: 30.75

The French multinational investment bank and financial services company Societe Generale SA has broken up through the ceiling of the rising trend channel in the medium term, which signals an even stronger rising rate. The stock has support around 29 and 26.40 euros which is equivalent to between 7.6 and 14.10 per cent. The resistance is at 35.30 and 38 per cent or between 14.8 and 23.6 per cent higher. This gives a favourable return to risk ratio.

Positive volume balance strengthens the stock in the short term. The short term momentum of the stock is strongly positive, with RSI above 70. This indicates increasing optimism among investors and further price increase for Societe Generale SA.

Investtech's outlook (one to six months): Positive

ARCELORMITTAL (MT.CAC40) Close: 16.36

Another interesting stock is the steel giant ARCELORMITTAL. Investors have shown interest in the stock and the stock has broken above the ceiling of the falling trend channel in the medium and long term, which indicates an even stronger rising rate. Also a buy signal has been initiated by an established inverted head and shoulders formation and the stock may rise to 20.94 euros or more.

There is short term support between 15.60 and 14.50 euros and resistance around the 21.20 level. Positive volume balance shows that volume is higher on days with rising prices than days with falling prices. The stock has strong positive momentum and further increase is indicated.

BNP Paribas SA (BNP.PA) Close: 5.08

Above is the long term chart of BNP Paribas SA, which has broken through the ceiling of a falling trend channel in the long term. The stock is inside a rising trend channel in the medium term. The French international banking group is the world's 8th largest bank by total assets.

The stock has given a positive signal from a double bottom formation by a break up through resistance at 49. Further rise to 59.01 euros or more is signalled. The stock has support at euro 49.00 and resistance at euro 60.60. The RSI curve shows a rising trend, which could be an early signal for the start of a rising trend for the price as well. The stock is overall assessed as technically positive for the medium to long term.

Investtech's outlook (one to six months): Positive

The analyses are based on closing price as per December 17, 2019. 

These instruments are traded in currency based on the Exchange or country they are listed on.