Screening Filters
Sector: ['Financials', 'Consumer Non-Cyclicals', 'Healthcare', 'Technology', 'Energy']
- Purpose: To exclude sectors that are likely to contain companies involved in prohibited activities under Islamic finance principles, such as conventional banking, insurance, alcohol, gambling, and other non-compliant industries.
- Rationale: The selected sectors are generally more likely to include companies that can meet Islamic finance criteria. For example, the "Financials" sector may include Islamic banks, while "Consumer Non-Cyclicals," "Healthcare," "Technology," and "Energy" sectors are less likely to involve prohibited activities like gambling or alcohol production. This filter narrows the search to sectors with a higher probability of containing Shariah-compliant stocks.
Themes: ['Halal', 'Ethical Investing']
- Purpose: To ensure that the stocks selected align with Islamic finance principles and ethical investing standards.
- Rationale: The "Halal" theme directly targets stocks that comply with Shariah law, while "Ethical Investing" further ensures that the companies operate in a socially responsible and morally acceptable manner. This filter is critical for meeting the user's requirement to exclude companies involved in prohibited activities and to ensure compliance with Islamic financial guidelines.
Technical Indicators: 'Stocks with positive RSI and MACD signals, breaking resistance levels, and showing strong volume trends.'
- Purpose: To identify stocks that are currently showing strong bullish technical signals, indicating a higher probability of upward price movement in the short to medium term.
- Rationale: The user specifically requested stocks with positive momentum and technical indicators such as RSI, MACD, and resistance breakouts. This filter ensures that only stocks with strong upward trends, positive momentum, and sufficient trading volume are included, aligning with the user's focus on technical analysis.
Is Trending: 'True'
- Purpose: To prioritize stocks that are currently gaining attention in the market, which often correlates with strong price movements and liquidity.
- Rationale: The user requested stocks that are expected to show strong upward movement in the short to medium term. Trending stocks are more likely to exhibit the desired characteristics, such as strong momentum and sufficient liquidity, making this filter relevant to the user's query.
Why Results Match:
- Shariah Compliance: The combination of sector filters and the "Halal" theme ensures that the stocks selected are highly likely to meet Islamic finance criteria. By excluding sectors and activities that are prohibited under Shariah law, the filters address the user's requirement to focus on halal stocks.
- Technical Analysis: The technical indicators filter directly aligns with the user's request for stocks showing positive RSI and MACD signals, breaking resistance levels, and exhibiting strong volume trends. These criteria are essential for identifying stocks with strong upward momentum.
- Liquidity and Stability: The "Is Trending" filter helps avoid highly volatile stocks with insufficient liquidity, as requested by the user. This ensures that the selected stocks are not only halal but also technically sound and stable for investment.
Limitations and Clarifications:
While the filters applied are effective in addressing the user's query, there are some specific details in the user's request that cannot be fully addressed by the current screening system:
- Debt and Interest Ratios: The user requested a detailed analysis of the company's debt and interest ratios to ensure compliance with Islamic finance thresholds. However, the current filters do not explicitly screen for these financial ratios.
- Alternative Approach: The "Halal" theme likely includes companies that have already been pre-screened for compliance with Islamic financial principles, including debt and interest ratios. While this is not a direct filter, it serves as a reasonable proxy.
- Entry Price, Stop Loss, and Profit Targets: The user requested specific price levels for entry, stop loss, and profit targets. These details require additional manual analysis and cannot be generated directly from the filters. However, the technical indicators filter provides a strong foundation for identifying stocks that are likely to meet these criteria.
Conclusion:
The filters applied are well-suited to the user's request for halal stocks with strong technical indicators and upward momentum. While some specific details (e.g., debt ratios, exact price levels) are not directly addressed, the combination of sector, theme, technical indicators, and trending filters provides a robust framework for identifying relevant stocks. If no strong opportunities are found, the system can still identify halal stocks that are nearing a breakout or showing early signs of upward momentum.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.