Swedish Match has triggered a buy signal from a huvudskuldra bottenformation which opens up for a test of all time highs. Any backlash down to 297kr constitutes a köpläge.
The Swedish match share is trading within a long-term rising trendkanal, where kanalgolvet acting as a support in the kursnedgångar and kanaltaket that whole line before further rise.
In november 2016 forcerades 297kr on the downside, which triggered a sell signal and formed a resistance that proved to be tricky to get through for a longer period of time. The support at kanalbotten in the rising huvudtrenden, however, has been proven after extensive testing which gave an early indication that the previous support at 297kr that has been converted to a resistance, would likely be rushed. After five attempts forcerades to the end of the 297kr on the upper side, which is a significant positive development because the outbreak coincides with the nacklinjen in a huvudskuldra bottenformation.
Prisobjektivet indicates a test of the previous highs, in a first stage… then there is only outline in form of kanaltaket around 345kr.
We see the possible backlash down to 297-298kr the best possible entry level for a purchase. Målkurs is set to 317kr, stoploss is placed preferably at a closing under 293kr.
Would the share the against all odds show weakness and overthrow köpsignalen by significant shut down during the utbrottsnivån open it up for further decline with 290 followed by 286kr.
The share traded above the long-term weak falling 40-week moving average.
The OMXS Large Cap
The stock is traded on the stockholm stock exchange, under the symbol SWMA.