UK Stocks With Strong RSI Momentum

While UK stocks as a whole remain in a holding pattern ahead of next week's Autumn Budget, some notable companies are breaking the trend and have seen strong momentum in recent days.

Top UK Stocks with RSI near 70

• Games Workshop (GAE): 63
• Spectris (SXS): 63
• Kainos (KNOS): 62
• Computacenter (CCC): 61
• Petershill Partners (PNL): 60

UK Stocks Struggle Despite News

The benchmark index for UK stocks initially rose on Wednesday after theONS reported that inflation dropped to 3.6% from 3.8% a month prior, continuing the trend towards the BOE's target. However, the FTSE 100 quickly dipped back into the red, as the optimism was short-lived. The market had already largely priced in a BOE rate cut for December, and the inflation figures merely confirmed these expectations. A broader risk-off move in markets, which has affected many large London-based global firms, has also impacted UK stocks. Traders in British equities arekeeping in a holding pattern ahead of the budget expected to be announced next Wednesday, amid rumours and leaks of what measures the government might take to bolster tax revenue. The recent volatility has left a confusing picture, and investors are unwilling to take risks on British stocks. But there are certain exceptions. These companies have seen their prices surge recently, which might mean further upside or time for a correction.

Games Workshop Supported by Analyst

Warhammer 40K owner Games Workshop has had a surprisingly strong performance in November, despite not providing a third-quarter trading update. But that didn't stop analysts at Jefferies fromraising their price target for the company to £118.50 per share, calling it a "major opportunity". However, the stock price had already been rising late in October as investors took note of progress on the "Horus Heresy" series. Given the strong reception of Space Marine II last year, Jefferies suggested that tough comparables have marred the company's performance this year. However, that bodes well for the company's future, and there could be substantial upside when the Warhammer 40K series comes out, supported by Henry Cavill's star power. On Thursday, the company issued a trading update for the half year,posting a surge in revenue to £310 million from £269.4 million a year earlier.

Kainos Rising on Shareholder Rewards

The parent company of Workday has seen gains, as slack in the British labour market apparently prompts businesses to shift to digital HR services to reduce costs. While the company was one of the strong performers in November, it's just the latest in a series of substantial gains it has been experiencing since posting guidance back in late August. The company's interim results on November 10 helped secure investor support after itraised its dividend to 9.8p from 9.3p a year ago. The board also announced a £30M share buyback. After reporting a 19% gain in annual recurring revenue (ARR), Kainos said it expected further growth in the segment and talked up growth in its AI business.

Computacenter Riding the AI Wave

The IT company shares have been trending higher since the summer, but it appears to have avoided the FTSE's latest doldrums thanks to its exposure to the US IT market. The company has seensubstantial gains in its North America unit and resumed profitability in its German subsidiary amid strong infrastructure demand to support expanding AI. In its Q3 trading update on October 30, the company touted its backlog and confidence in medium-term growth. Given its exposure to overseas income, the company stands to benefit from a weaker pound if the BOE resumes rate cuts in the coming months.

Key Takeaway

While UK markets tread water ahead of the Autumn Budget next week, some companies like Games Workshop, Kainos, and Computacenter are defying the broader malaise with strong momentum. Driven by analyst upgrades, shareholder rewards, and AI tailwinds, these outliers show that company-specific catalysts can still drive performance even as the Footsie remains caught in a risk-off holding pattern.