Analysis: Atlas Copco is gearing up for the rebound!

Atlas Copco has after a couple of weeks of gaining strength, have begun to show a positive ‘ vapour. The arguments are clear, a positive development, which suggests that we may be on the way back towards previous all time high. Share the challenge after Thursday’s trading also a technical key level seriously, and the start may be on the way to be retriggered within a short…

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During the month of may dropped the Atlas Copco clearly with mark, after Morgan Stanley lowered verkstadssektorn ”cautious”.

The company’s shares were in the first half of the month of may at an all-time high, which was challenged repeatedly.

Then decline to sek 315, however, we have had the opportunity to experience a clear sideways movement, slowly but surely to the north. We’ve also got a clear idea about the short-term 50-day moving average.

We begin to take back ever more of the previous decline. The shares are listed more than 17 per cent up since the beginning of the year.

A positive ‘ vapour have also emerged since the decline to sek 315, which is also shaped to a heavy intensity.

Köpstyrkan, thus showing an underlying sign of advantage, and we have experienced the repeated challenging of the resistance level at 324.50 sek, which means that we believe that Atlas Copco now and gearing up for the upturn.

Initially we are waiting for the establishment of the resistance level at 324.50 crowns, which would be an attractive entrance to be about 325 million, for the to confirm an outbreak.

At such positive momentum, we believe that the probability is high, that we can get an increase to our målkurs 335 kronor. Just above this level, we find ourselves at the previous all-time high, and sellers are expected to provide the properly with the resistance here.

The probability, however, is high, that it may be a new all-time high during such a journey, but the risk is high that it may be a short rebound intraday, followed by profit taking, which means that we are somewhat more cautious with such an assessment.

Tentatively placed a stop loss already at 322.00 crowns, in order to limit a possible false outbreak of resistance at 324.50 crowns.

As late as on Thursday, it was revealed that Atlas Copco entered into an agreement to acquire a part of Mobilaris MCE AB, a sweden-based company that provides advanced software that optimizes the mining activities underground.

”The innovative team at Mobilaris will play a key role when Atlas Copco develops its digital and automation solutions, which provides mining and anläggningskunder increased security, more efficient operations and higher productivity,” said Helena Hedblom, head of Atlas Copco’s business area Mining and bergbrytningsteknik. ”This is the future of mining.”

The acquisition of Mobilaris the MCE is expected to be completed in the beginning of the third quarter of 2017, and will operate as a separate company, partly owned by Atlas Copco.

The stock is traded on the stockholm stock exchange, under the symbol ATCO A.

Atlas Copco

Entrance buy
325.00 kr

335.00 £
The OMXS Large Cap

Emergency exit
322.00 £

324.40 kr
Direct avk.


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