Consumer Staples (XLP): The index, after consolidating just below its 200-DMA, has finally reclaimed it, though volume has been low. However, it continues to lag the broader market, with the RS line remaining in a downtrend with weak technical ratings. The next major resistance is around the $75 price level, which it reached in June/July 2023.
Author: Tristan d'Aboville
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index continues to recover and has reclaimed its 100-DMA. It is now facing resistance at its 200-
DMA. It is currently consolidating just below its 200-DMA. A decisive break above 200-DMA should be bullish for the sector. However, it
continues to lag the broader market, with RS line remaining in a downtrend with weak technical ratings.
Europe: Rising Distribution = Market Under Pressure, but Pockets of Leadership Remain
Europe: Finding New Investment Ideas Through O’Neil Sector Score Cards
The report delivered on Mondays by email, includes Sector Score Cards, which provide insight into leaders, actionable ideas (buyable), and laggards using O’Neil Proprietary Ratings and Rankings.
In this eight minute webinar, Tristan d’Aboville and Indrajith JC from the O’Neil Research Team explain what is behind the Score Cards and how to use them to spot new ideas, supported by examples on BAE systems (BA.GB), Siegfried (SFZN.CH) and ASML (ASML.NL).
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index continues to recover and has reclaimed its 100-DMA. It is now facing resistance at its 200-
DMA. It is currently consolidating just below its 200-DMA. A decisive break above the 200-DMA should be bullish for the sector.
However, it continues to lag the broader market, with RS line remaining in a downtrend with weak technical ratings.
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index continues to recover and has reclaimed its 100-DMA. It is now facing resistance at its 200-DMA
and is consolidating just below the moving average. A decisive break above its 200-DMA should be bullish for the sector. However, the
index continues to lag the broader market, with the RS line in a downtrend and weak technical ratings.
European Weekly Summary
Key points from this week’s report:
Please refer to the attached PDF for the full report.
- European markets closed in the red and declined the most on a weekly basis since October 2023. The Stoxx 600 along with a majority of the indices are still in a Confirmed Uptrend and trading near their short-term moving averages. The Stoxx 600 has support at its rising 21-DMA but is extended from its key support levels (50-, 100-, and 200-DMA). Thus, we recommend booking profits in extended names. Be selective in adding top-rated names that are breaking out of proper bases and wait for the rising 50-DMA to catch up.
- Sector were mixed. Healthcare gained the most, while consumer cyclical led the decline. On our rotation graph, financial, capital equipment, healthcare, transportation, and retail are showing improvement in short-term momentum. Energy, technology, and utilities are showing a decline in their short-term momentum.
- European Focus List Update:
- Actionable names include Bae Systems (BA.GB; BA/LN), Bridgepoint Grp (BPT.GB; BPT LN), Recordati Indua.Chimica (REC.IT; REC IM), Safran (SGM.FR; SAF FP), Swedish Orphan Biovitrum (SOBI.SE; SOBI SS), Siegfried ‘R’ (SFZN.CH; SFZN SW), Ypsomed Holding (YPSN.CH; YPSN SW), Inditex (IND.ES; ITX SM), and Beiersdorf (Xet) (BEIX.DE; BEI GR).
- Addition: None
- Removal: None
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index continues to recover and has reclaimed its 100-DMA. It is now facing resistance at its 200-DMA. It is currently consolidating just below its 200-DMA. A decisive break above 200-DMA should be bullish for the sector. However, it continues to lag the broader market, with RS line remaining in a downtrend with weak technical ratings.
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index continues to stage its recovery and has reclaimed its 100-DMA. It is now facing resistance at its
200-DMA and consolidating just below the moving average. A decisive break above its 200-DMA should be bullish for the sector.
However, the index continues to lag the broader market with RS line in a downtrend and weak technical ratings.
O’Neil Consumer/Retail Weekly
Consumer Staples (XLP): The index continues to recover and has reclaimed its 50-DMA. It is now facing resistance at the 100-DMA.
If it manages to reclaim that, the next level of resistance is at the 200-DMA (2.5% above). However, it continues to lag the broader
market, with the RS line remaining in a downtrend with weak technical ratings.