Using the tools offered by the Inch platform (https://datascollector.inchcapital.com/index.php) we are able at any time and in a few seconds to analyze each financial object according to the absolute, relative and comparative ARC method.
Based on the ARC method, I analyze every financial object from three points of view. To do this analysis I need a basket of competitors.
In this case, we have examined all the European blue chips including the British and the Swiss, that is a sample of 409 shares valued based on weekly time series updated to 21 June 2018. In less than three seconds the Inch platform has analyzed and classified according to the score expressed by the trend / momentum DSS (https://inchcapital.com/professional-investors-services/).
This analysis shows that the three strongest European blue chips based on the score are respectively
- MONCLER (isin code IT0004965148])
- KERING (isin code FR0000121485 [EUR])
- STMICROELECTRONICS (isin code NL0000226223 [EUR])
Moncler weekly bar chart – daily closing euro 39.78 – Update June 21, 2018
MONCLER (https://en.wikipedia.org/wiki/Moncler): it has been on a bullish trend since December 16, 2016 and therefore around seventeen months. The last buy signal, for those who have a more oriented approach to active trading, was recorded with the daily closing of 12 February 2018 and therefore with an entry level corresponding to the opening of 13 February (€ 26.92) – This position is still LONG with a stop at 36.46 and a target of 42.55. In addition, the weekly position is LONG with a stop at 36.46 and a target at 46.26.
MONCLER – decay in progress
The chart shows that the last bullish phase is inertial and not propulsive, as confirmed by the progressive decline in DSS scores
Kering weekly bar chart – daily closing euro 480.00 – Updated 21th, 2018
KERING (https://en.wikipedia.org/wiki/Kering): it has been bullish since 29 July 2016 and therefore around twenty-four months. The last buy signal, recorded with the daily closing on 3 April 2018 and therefore with an entry level corresponding at the opening of 4 April 2018 (€ 374.00), exit on 20 June 2018 (therefore opening of 21 June at € 485.70). The daily position is NEUTRAL, while the weekly position is LONG with a stop at 450 and a target at 555.04.
STMicroelectronics weekly bar chart – daily closing euro 20.47 – Updated 21th, 2018.
STMICROELECTRONICS (https://en.wikipedia.org/wiki/STMicroelectronics): it has been in a bullish trend since 29 July 2016 and therefore around twenty-four months. The last buy signal, which was recorded with the daily closing of April 25, 2018 and therefore from the opening of April 26 (euro 18.15). Exit with yesterday’s daily closing and therefore from today’s opening on June 22, 2018 to € 20.46, therefore the daily position is NEUTRAL while the weekly one is still LONG with a stop at 19.67 and a target of 25.67.
All three listed stocks have extremely high long-term cyclical positions and therefore expose themselves to an important corrective phase. The European sectors linked to luxury and technology are still among the absolute favorites. On the other hand, the Telecom, Pharmaceutical and Utilities sectors did not participate in 2016/2018 biennial rally that characterized the stock markets.
Moncler, which as early as last 25 April (The Inch Magazine) had shown (ARC) absolute, relative and comparative strength, is also exposing itself to potential major corrective phase given the inertial trend highlighted in recent weeks.