Markets are complicated. This is the most repeated phrase when we talk to analysts to get their predictions on which strategy can be followed in the current environment. Three factors come together: that we have a low volume of transactions typical of August, which translates into greater volatility and movements back and forth in the indices. However, in this environment, there are companies whose charts show signs that they may be good options to invest in the short term. And most of them come from the continuous market.
Faes Farma barely rose 0.50% last week but, since the start of the year, it has benefited from a revaluation of more than 16%. A value that, for Antonio Espín, independent analyst, “generally has a noble behavior. I like it because it has a wide floor and it looks good”.
The strategy consists of buying at 4.05 euros with a stop at 3.80 euros to wait for possible rises towards 4.50 euros, as the first objective. See more…
A strategy that offers an expected return of more than 11% with a possibility of loss if it hits the -6% stop.
This week, the shares of Miquel and Costas suffer a penalty of more than 2% and, within the year, these declines are extended to 3%. However, it is action worth watching. “Whoever likes it, buys at 12.65 euros until he breaks 13 euros”, specifies Espín, who would keep a stop at 12.35 euros. A company that, in the event of an upward breakout, could even exceed 13.50 euros and develop a bullish movement.
A strategy that would offer a possible return of 2.7%, in the chaos of reaching a first objective, and 6.7% if it reaches 13.50 euros with a downside risk limited to 2.3%.
From a more medium-term perspective, the value is in the consolidation phase of the long-term uptrend. Overall momentum is positive and medium-term volatility is consistent with continued value gains.
Finally, Viscofan remains stable both last week and this year. And that’s what, after a camp that lasted two years, the impression that he experienced a first break in resistance. “The value has been stopped near 58.50 euros and, if it falls to 56 euros, an attempt to buy can be made with a stop at 55.30 euros, waiting for it to attack the resistance zone again “, explains Espín. Further, the sector sees itself moderately favored in this environment and the impression that it wants to break up.
The strategy would offer a return of more than 4% in the short term with a possible loss if the 1.25% stop is hit. The risk/reward equation therefore seems balanced.
The value, according to technical indicators, is in a short to medium term bullish phase with a score of eight out of ten and both momentum and volatility are supporting the rise in value.