Momentum factor describes a quantitative way to invest, a style that favors stocks to drive at strong price. The Ishares MSCI USA momentum factor ETF (MTUM) provides a tradable vehicle using momentum factor. It has been a major source of underperforming in the past few deals, with its high altitude naming undergoing significant drawdowns, including Palantir Technologies (PLTR), which has fallen by more than 25% in the past few courses. While momentum factors have been a source of long-term performance, MTUM and its largest holdings show vulnerability. We believe they become overexpanding and are expected to merge in the next few weeks. ETFs are still in a long-term bullish trend, but each medium-term expiration/overselling indicator (such as weekly self-stochastic oscillator and Demark indicator) may maintain a correction period for weeks. MTUM is now approaching the initial support of $216 from its 50-day moving average (MA), which has the potential to serve as a rebound. Ultimately, whether we don’t rule out a deeper callback for the 200-day MA (nearly $202) before correction. PLTR is one of the most watched momentum stocks, and like MTUM, it has a “sell” signal from mid-term expiration in the stochastic oscillator and Demark indicators. Last week’s callback led to an “outside” bar, which further increased the risk of a deeper callback in the coming weeks. The initial support was at nearly $85 for the previous resistance. We are getting secondary support from the Daily Cloud Model (not shown), which rose to $70 next week. The deterioration of our short- and medium-term indicators has not affected our long-term momentum, which still supports a broader uptrend in the PLTR. Goldman Sachs (GS) (GS) is another example of momentum stock that is responding to over-definition on its weekly chart. In the context of a long-term uptrend, a random weekly downturn is a medium-term setback that increases the risk of a deeper pullback before a few more weeks of integration. Highs defined initial support for GS in November, with more important secondary support being found on a 200-day MA, at about $529. Both PLTR and GS reflect the loss of momentum behind the momentum factor, which was shared by heavyweights such as Walmart (WMT) and Costco Wholesale (Cost). While their collective shifts may continue to hinder MTUM and other agents, the merger phase has the potential to eventually refresh its long-term uptrend. – A study on access to Fairlead strategy by Katie Stockton and Will Tamplin. Disclosure: All opinions expressed by CNBC Pro contributors are their opinions only and do not reflect the opinions of CNBC, NBC Universal, its parent company or affiliate, and may have previously been circulated on television, radio, the Internet or other media Opinion. 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