Axfood’s share price has shown positive indications by force the resistance at 145kr and establish itself above the MA of 40 weeks. On the rise and a test of the 165kr is likely.
Axfood’s share price has since 2013 been trading above the long-term jämviktsvärdet in the form of the 40-week moving average. During October 2016 forcerades this with a good margin which was a clear sign of weakness and is liable to reverse the long-term trend to descending. The support around the 132kr was of crucial importance to provide the possibility of a return to the rising huvudtrenden.
The share has rejected this support from above on three occasions in the past six months, and formed a trippelbottenformation which led to an outbreak upwards through the resistance at 145kr at the end of last week, which triggered a technical buy signal within the consolidation. When the aid is been proven after extensive testing, it would seem logical with a movement up against the intervalltaket and, perhaps, beyond all this, in order to determine possible further köpstyrka.
We see an ideal entry level for a buy on a test of 145kr from the top, then this converted to a support. The emergency exit is placed preferably at a closing under 141kr. Målkurs is set to 163kr subject to the possibility of an outbreak on the top.
Would the share the against all odds show weakness by significant shut down during the 145kr expected a more powerful test of the support at 132kr. Closing share price significantly below that has huvudtrenden turned to falling from the current sidåtgående mode.
The share traded above the falling 40-week moving average.
The OMXS Large Cap
The stock is traded on the stockholm stock exchange, under the symbol AXFO.