Analysis: the Recoil of the Wallenstam?

Wallenstam has after a triggered buy signal rekylerat the last few weeks and formed a spinning top candlestick, which indicates that the downturn may be over. So the location at which the share traded above 79kr is expected to new highs in the cards.

Wallenstam traded within a long-term rising trendkanal where kanalbotten support the rekylfaser and kanaltaket acting as a heavy line at the kursstegringar. The share has recently triggered a strong buy signal by passing 76kr on the top. Prisobjektivet indicates a rise against 94kr, which coincides with the resistance at kanaltaket.

In recent weeks, the shares have rekylerat down from a local peak at the 86kr down to the lowest 79.15 $ share price formed a spinning top candlestick… indicating a declining selling pressure that gives good odds that the current downturn is over. So long as the share is trading above the lågpunkten two weeks ago, is expected to a test and a crossing of the 86kr level and further rise towards 94kr.

Then the previous overbought situation in a certain extent neutralized, and the share has shown a declining selling pressure in a rising major trend, the stock is buyable on the rebound. An ideal entry level for a purchase is a smaller decline to 81.20 £ Målkurs is set to 93.50 € the emergency exit is placed preferably at a closing under v78.50.

Would the share the against all odds show weakness by having a significant close below the swing low to 79.15 usd is expected to a test of utbrottsnivån from the month of april around 76kr.

The stock is traded over the long-term rising 40-week moving average.

Wallenstam B

Entrance buy
81.20 £

93.50 £
The OMXS Large Cap

Emergency exit
78.50 £

81.60 £
Direct avk.

The stock is traded on the stockholm stock exchange, under the symbol of the WALL B.

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More about technical analysis:

  • Common concepts in technical analysis
  • Moving averages – lagging indicator, which filters out the noise
  • MACD – technical indicator, which fits well into the trends
  • RSI – a classic momentumindikator that is a ”must” in swingtrading
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