Global stocks: Trading opportunities, two buy and a potential sell

Published February 13, 2018

S&P 500 does not show any clear trend in the medium long term. The index has support at points 2580 and resistance at points 2790. The short term momentum of the index is strongly positive, with RSI above 70 and the short term Hausse Index is at 78,  while the long term Hausse is at 42. This indicates increasing optimism among investors, but the longer term Hausse index is at 42. This suggests that long term investors still are looking for some boost to be more optimistic about the broader market in general. The Hausse indices are indicators of optimism. They show the ratio of investors who are positive in the market. More about Hausse can be read here.

We ran through the US stocks using our Stock selection tool, which can sort stocks based on parameters like liquidity, volatility, trend, momentum and volume, etc., and found three trading opportunities for you.

General Motors Company Close: 39.03

General Motors Company has broken up through the ceiling of the falling trend channel in the medium term. In the first place this indicates a slower initial falling rate. The stock has broken up through resistance at dollar 38.40. Further rise in the stock is suggested.

The short term volume balance indicator and the momentum indicator RSI are turning up and positive. This further strengthens the stock.

There is now resistance at 44.80 dollars and support around 38.40-37.00 dollars, which favours the risk reward ratio.

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

Colgate-Palmolive Comp (CL.US) Close: 66.02

Next on our list is Colgate-Palmolive Company which has broken through the ceiling of a falling trend channel in the medium term. The stock has also broken above the resistance at 65.50 dollars and given a buy signal from a double-bottom formation. This gives a target of 73. However, there is resistance at 69 and 72.50 dollars respectively which if broken can lead the stock higher. There is support around 62.70-61.70 dollars.

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 Colgate-Palmolive Company. However, particularly for big stocks, high RSI may be a sign that the stock is overbought and that there is a chance of a reaction downwards, so one must maintain proper stop-loss. The stock is overall assessed as technically positive for the medium term.

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

Verizon Communications (VZ.US) Close: 54.42

Verizon Communications Inc has broken through the floor of a rising trend channel in the medium term. This indicates a slower rising rate at first, or the start of a more horizontal development. A head and shoulders formation is under development. A decisive break of the support at 53.05, ideally with an increase in volume, will signal a further fall.

The stock has broken down through support at dollar 55.00 which weakens the stock. But if price closes above this level and swings up would indicate that sellers might temporarily be losing strength. There is support around 46.20 dollars.

The volume balance is negative, which suggests that currently sellers are being more aggressive than buyers. Also the momentum indicator is inching downwards. For these reasons, we have downgraded this stock to a watch from a buy which was suggested last year in October.

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

 

The analyses are based on closing price as per February 12, 2018.

Note: These instruments are traded in currency based on the exchange or country they are listed on.

Skrevet af

Kiran R. Shroff
Analytiker
i Investtech

"Investtech analyserer psykologien i markedet og giver dig konkrete tradingforslag hver dag."

Espen Grønstad
Partner & Senior Advisor - Investtech
 


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Investeringsanbefalinge(r)n(e) er udarbejdet af Investtech.com AS ("Investtech"). Investtech garanterer ikke for fuldstændigheden eller rigtigheden af analysen. Eventuel eksponering i forhold til de råd / signaler, som fremkommer i analyserne, står helt og holdent for investors regning og risiko. Investtech er hverken direkte eller indirekte ansvarlig for tab, der opstår som følge af brug af Investtechs analyser. Oplysninger om eventuelle interessekonflikter vil altid fremgå af investeringsanbefalingen. Yderligere information om Investtechs analyser findes på infosiden.

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