Klädvarukedjan Hennes & Mauritz, after a sharp decline in the consolidated during a little more than 1 month’s time. Positive progressions have occurred when köpstyrka finally looked back, opening up for potential outbreaks in the future. Heavy resistance awaiting, however, just over Wednesday’s closing price, and the question is if the strength is sufficient for an outbreak, or renewed trip down to the year low waiting…
Get Minianalys Swedish Shares automatically to your e-mail every day before the stock market opens!
Hennes & Mauritz has gradually moved further south since the all time high reached just over 370 kronor in the first quarter of 2015.
The trip to the south has meant that the stock lost more than 40 per cent of the market capitalization, while several significant technical key levels have been broken.
Positive signs have started to look up. Over the last few trading days we have now experienced renewed köpstyrka, at the same time as we left the year behind us.
Despite the fact that there is a positive attitude, we have heavy resistance level of just over sek 220, which is not only confirmed in the last year, but even if we turn the eye as far back as 2012.
We note namely the historically significant volume around this price range, which means that the resistance is expected to be hard to beat. Any rebound at this price level, opens up for potential revisit of the low for the year of around sek 210.
If the renewed köpstyrka encountered, turns out to be genuine, it may very well prove to be a mobilization that is underway. This would, in turn, be able to open up for the establishment of our resistance level in the short, which would also mean the outbreak from our consolidation has been going on since the beginning of april.
We experienced such a significant decline of 14 per cent since the turn of Hennes & Mauritz, the probability increases that we can get a more significant movement to the north, on the establishment of the resistance level occurs.
Further to the north is primarily sek 250 is initially in focus, which is the next significant resistance level.
Interesting observation is that for the past two weeks, buyers had the upper hand, then we during the last two weeks of trading on plus. On the basis of a månadsperspektiv, we have also since three months back had a declining sales force.
Perhaps this is a further positive sign, the company now had a turning point when köpstyrka looked back?
The share is trading below our moving medeltalstrio, 50, 100 and 200-day moving average.
Although the company continued to post weaker sales growth during the month of april when the monthly statistics were presented may 8, came the figure out of the 7 per cent. Sales rose any better-than-expected 6.9 per cent, which, according to SME direkt was the average of expectations of analysts.
Peers have shown similar noises in the past, with weaker growth, and a sign of strength purely, fundamentally, would be an improved situation next month, when the company presents sales figures from may.
Hennes & Mauritz
Ticker
HM B
Latest
219.30 kr
Market
The OMXS Large Cap
P/E
19.6
Direct avk.
4.4%
Our conclusion is that we primarily are seeking for a the establishment of the heavy resistance level of just over sek 220, before the positive sentiment can be confirmed.
This means that we see a clearly heightened probability that we can get to challenge the 250 kronor in the long term. No further rise over the resistance level, however, increases the risk of the return visit of the year at sek 210.
The stock is traded on the stockholm stock exchange, under the symbol HM B.
