Alfa Laval, which is a world leading manufacturer of pumps, valves, heat exchangers and separators have clearly lost ground since the year high at 185 crowns, just below the all time high sek 187. Wide downturns on the stock market on Thursday drew even with Alfa Laval in the south, and may be about to challenge the heavy intensity…
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Alfa Laval has since the end of april has been moving slowly but surely to the south from the high for the year 185 sek. Although we experienced a decline of just over 8 percent since then, the stock is still up more than 13 percent since the end of the year.
In addition to that we on Thursday, seriously stepped over the short-term 50-day moving average for the first time since 21 november 2016, the challenge, share the underlying trend line, which has been shaped since the end of the summer of the same year.
From a technical perspective, with continued sales force in the image, this can now come to mean that we get a challenging of the heavy support level at 166 crowns.
Historically, it is significant volume at this price level, which means that we expect that the buyers should at least show some strength here, to try to keep the land.
Occurs a rebound is already here, well then, there is the possibility and space for to there may be a return visit at the initially the fulcrum and to some extent, the resistance at 175 crowns, which last just over two months, noted the clear volume.
A breakthrough and a further trip to the south, would, however, mean that the next technical support at 160 crowns to be in focus, before onward travel to the south may come to be in the playing field.
In particular, we do not see for the moment signs of köpstyrka, which can be a sign that we get one to two additional nedgångsdagar, before we may challenge this level of support.
Although Alfa Laval is now short-term oversold, with two clear nedgångsdagar, the space is technically for a further small decline, and it may as well be temporary profit taking after earlier rise in the year to that experienced currently.
On the basis of a veckoperspektiv we note also three weeks in a row, with the trade in which the sales force had the upper hand, which means that we are seeking köpstyrka, for a potential rebound back to the north, at the support level, or alternatively, just below that, in order not to risk a possible consolidation in the 160-166 crowns.
The shares traded below our 50-day moving average, and the MA 100 is awaiting just below the current handelsnivå at 165 sek.
The company commented so late in the week to Today’s Industry that are actively working to find companies that complement the business today.
”The last few years, we have spent a large part of the investments to build a strong position within the Marine and Energy and, all else being equal, the priority is now our third area of Food & Water”, said the company’s ceo Tom Erixson to the DI.
At the same time, it highlighted the fact that despite the high price tag of the acquisition, it need not be a ”dealbreaker” if the company completes Alfa Laval’s structure.
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In its entirety, it means that we primarily keeps track of the underlying trendline, which is currently being challenged at the 170 crowns. We also have clear support levels in the short at 165 and 160 kronor, which is worth to take in mind if the breakthrough is.
In the event of any rebound, and rebound we expect that sek 175 may come to exhibit a certain amount of resistance, then we have a clear fulcrum around this price level then we just before, and after we were about to challenge the all time high at sek 187 in the end of april.
The stock is traded on the stockholm stock exchange, under the symbol ALFA.