6 Stocks Poised for a Technical Breakout as New Catalysts Emerge

• European markets face a mixed backdrop, with resilient manufacturing data supporting equities while inflation has risen to 3.3% amid elevated energy prices.
• Volkswagen stands out as a value opportunity, combining a P/E of around 8, roughly €41 billion in cash, and an improving technical setup after finding support near €69.
• Several other stocks offer catalysts, including a potential $10 billion SpaceX contract for Technip Energies, a Goldman Sachs Buy rating for Viridien, and improving setups for Forvia and Air Liquide.

European markets are dealing with a complicated backdrop, with inflation moving higher again as oil prices remain elevated, while manufacturing data in the US and Europe is holding up relatively well.

The US manufacturing PMI came in at 53.9, slightly above expectations and still comfortably above the 50 level that separates expansion from contraction. Manufacturing PMIs in France and Germany also remained above 50, at more than 51 and 54, respectively. European inflation, however, has moved back up to 3.3%, partly reflecting higher energy costs.

Against this backdrop, European stocks are showing opportunities across several themes, with energy prices supporting oil and energy names while low valuations and improving technical setups are drawing attention to stocks such as Volkswagen and Forvia.

The CAC 40 was down 0.39%, approaching support around 8,253 and its 200-day moving average. The index is also sitting near the lower end of a mildly rising channel that has been developing since the March rebound.

1. Technip Energies Could Benefit From a Potential SpaceX Contract

Technip Energies (OTC:THNPY) has moved higher following reports that it is among the companies bidding for a potential $10 billion SpaceX contract related to fuel production facilities.

The project is expected to involve liquid hydrogen and liquefied natural gas, with Technip Energies reportedly among the candidates because of its technology and existing US presence. The contract could ultimately be awarded to one company or shared among several.

Technip had already been showing signs of accumulation around €30 before the latest move. The stock has now filled a bearish gap from several weeks ago and created a new gap higher.

The key question is whether the SpaceX (NASDAQ:SPCX) contract is actually confirmed. If it is, the stock could receive a further premium and potentially begin a longer-term bullish phase. For now, the setup remains interesting, but the bullish sequence has yet to be confirmed.

2. ProPicks Adds Volkswagen to Its German Portfolio

Another European name stands out for a very different reason: Volkswagen AG (OTC:VLKAF). The company has recently been added to the ProPicks portfolio for Germany, part of InvestingPro’s AI-driven portfolio system that changes its stock selections each month.

The inclusion is particularly interesting because Volkswagen’s valuation looks unusually low relative to the size of the business.

Source: InvestingPro

The company has a market capitalization of roughly €41 billion, while cash is also around €41 billion. Its P/E ratio is approximately 8, which is low even for an industry where valuations tend to be below those of technology companies.

There are legitimate reasons for that discount. Volkswagen has faced weaker operating margins, pressure from Chinese competition, lower vehicle sales and the costly transition toward electric vehicles. EPS has also declined, although it appears to be stabilizing, while revenue has remained relatively stable.

The balance sheet, however, remains substantial. Volkswagen has nearly €200 billion in equity and around €41 billion in cash.

Source: InvestingPro

That creates an unusual valuation proposition. Investors are paying roughly €40 billion for the equity while the company itself holds a similar amount in cash, alongside its operating businesses and other assets.

The ProPicks inclusion therefore adds another reason to put Volkswagen on the watchlist, particularly for investors looking for value within the European auto sector.

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Volkswagen’s Chart Is Starting to Turn

The technical picture is also becoming more constructive. Volkswagen has spent several years declining, but the stock found support around €69 and has since begun to build a more positive structure.

There was significant buying volume around that level, followed by a series of failed attempts to break lower. The company’s July 24 results helped reignite the stock, and since then it has been moving within a rising channel.

The combination of accumulation above €69 and an unusually low valuation makes Volkswagen one of the more interesting European auto names to watch.

The thesis still depends on the company avoiding a much more severe deterioration in profitability. For now, that scenario has yet to materialize.

Source: InvestingPro

3. Viridien Gets a Fresh Boost From Goldman Sachs

Viridien (OTC:VIRDY) is another energy-related stock attracting attention. The company has evolved toward a more technology- and research-focused business built around subsurface imaging and services for oil and gas companies.

The stock previously generated a buy signal on July 31 and has started to recover again. Goldman Sachs recently reinstated a Buy rating, providing another catalyst for the move.

Viridien had also shown accumulation around €76 after an earlier break. The stock remains below its 100-day moving average at €108, so there is still work to do before the broader technical structure becomes convincingly bullish.

A move above €110 could open the way toward approximately €130 over the following weeks.

4. Air Liquide Finds Support After Breaking Its Downtrend

Air Liquide (OTC:AIQUY) has also moved higher after breaking above its corrective downtrend line.

The stock reached around €176 intraday before closing near €173, leaving an upper wick on the day’s candle. Given Air Liquide’s typically low volatility, that signal is less concerning than it might be for a more speculative stock.

The first of two previously identified buying zones has already produced a reaction. That level sits around €165, while the deeper support zone is around €154.

The current setup therefore favors buying on pullbacks rather than chasing the move. Holding €165 would support the possibility of Air Liquide returning to a longer-term uptrend.

5. Total Benefits From Higher Oil Prices

TotalEnergies SE (NYSE:TTE) remains one of the main beneficiaries of the higher oil price environment. The stock was among the CAC 40’s stronger performers, while the persistence of elevated oil prices could support its results in the coming quarter.

The next technical question is whether TotalEnergies can push through €80 and establish a stronger upward trend.

The longer-term case remains attractive, particularly given its dividend yield, although the preference here is to buy the stock at somewhat lower levels. At current valuations, it looks more suitable as a core holding than as a high-growth opportunity.

6. Pernod Ricard Remains a Longer-Term Accumulation Story

Pernod Ricard SA. (OTC:PRNDY) has been moving lower again and is approaching the lower part of its recent range. The stock could remain between roughly €59 and €66 for another two to three months, with €59 becoming an important level to hold.

The fundamental picture remains challenging, particularly in China and the US, although the decline in volumes appears to have stabilized somewhat.

Potential tax relief for European alcoholic beverages could provide another catalyst, particularly if measures already seen for some British alcohol products are extended.

Valuation is already relatively low, but the company still needs clearer evidence of a recovery before the technical picture becomes compelling.

European Markets Still Have Several Setups to Watch

The broader market remains caught between higher inflation and persistent energy costs on one side and relatively resilient manufacturing activity on the other.

That environment is creating opportunities in individual stocks even while the broader CAC 40 remains close to important support.

Technip Energies has a potential SpaceX contract as a catalyst, Volkswagen combines a very low valuation with a new ProPicks inclusion, Forvia is accumulating around €9, Viridien has received a fresh Buy rating from Goldman Sachs, and Air Liquide is attempting to resume its longer-term uptrend.

Among these, Volkswagen stands out for the combination of valuation and improving technical structure, while Technip Energies offers a more event-driven setup tied to the potential SpaceX contract.

The important caveat is that several of these setups still require confirmation. Technical accumulation can fail, potential contracts can fall through, and cheap stocks can remain cheap for a long time.

For investors looking at European opportunities, however, these are the levels and developments worth watching as September begins.

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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of any assets and does not constitute an offer, solicitation, recommendation, or advice to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky; therefore, any investment decision and the associated risk are the sole responsibility of the investor. Additionally, we do not provide any investment advisory services.