Global stock markets continued to plummet during the first trading day of the week. For the Stockholm Stock Exchange’s broad OMXSPI index, there was a decline of 2.57 percent, closing at just under 928 points. Over the past week, the index has dropped by a staggering 6.68 percent.
The price has now broken through the floor of the rising trend channel and received a sell signal from a double top formation (DT) identified on the medium-term price chart. The trend break initially indicates a weaker rate of increase. Support is found around 890 points in the long term and 860 points in the medium term. Resistance is found around 1000-1013 points.
Investtech’s short-term Bullish Index stands at 32 today, a sharp decline from 56 a week ago. The index ranges from 0 to 100 and is an optimism indicator showing the percentage of stocks on the Stockholm Stock Exchange that had a buy signal as the last signal. A value between about 45-55 indicates a balance between pessimists and optimists. In the long term, the index stands at 45. Thus, we have an overweight of pessimists in the market in the short term and a slight balance in the long term.
We are still in the reporting season as many of the exchange’s companies will disclose their results for the second quarter of 2024. Many of the company’s insiders are prohibited from trading shares in their own company in connection with the report. This limits the number of insider transactions at this time of year. Investtech’s Insider Barometer shows the number of buy and sell transactions conducted by insiders in the exchange’s companies. In the last month, there have been 358 purchases and 103 sales, corresponding to a buying ratio of 78 percent. The annual buying ratio is 79 percent. Investtech’s research shows that stocks strong in insider trading statistically outperform the market.
OMXSPI is technically neutral overall in the medium term (1-6 months). However, the proximity to support and resistance levels means that the technical picture can change quickly. We recommend that long-term investors always remain invested in the market.
Investtech’s Recommendation: Neutral.
Telia Company Analysis
On the medium-term price chart, the price of Telia Company is developing within a rising trend channel identified by Investtech’s algorithms. This is a result of investors choosing to pay higher prices over the past year to buy into the company. It is a good buy signal according to Investtech’s research based on 35,097 similar trends over a 12-year period.
There is no resistance in the price chart, indicating further upward movement. In case of pullbacks, the price has support at around 26.20 SEK.
Telia Company is maximally positive on Investtech’s insider analysis, where the company’s CEO bought shares for 482,000 SEK on July 30, 2024. The stock is overall technically positive on a medium-term investment horizon (1-6 months).
Investtech’s Recommendation: Buy.
NCC Analysis
Investtech’s algorithms have identified positive trend channels in the construction company NCC on the short, medium, and long-term price charts. On the medium-term price chart shown here, the price is developing within a rising trend channel, indicating that the company is in a positive trend where investor interest is increasing.
There is no resistance in the price chart, and in case of pullbacks, the price is above the nearest support level at around 143 SEK. These technical indicators are considered buy signals according to Investtech’s research.
NCC B is maximally positive on Investtech’s insider analysis, and the stock is overall technically positive on a medium-term investment horizon (1-6 months).
Investtech’s Recommendation: Buy.
Electrolux Analysis
Investtech’s algorithms have identified several technically negative signals in Electrolux. The price is developing in a falling trend channel where investors have accepted lower and lower prices over a period. This signals pessimism among investors, and according to Investtech’s research on falling trends, further decline is indicated.
Recently, the price has also broken through support levels around 90.00 and 87.00 SEK, which have then converted into new resistance levels. This negatively impacts the analysis. The price is also in a rectangle formation between 81.30 SEK and 101 SEK. Established breakthrough at one of these levels signals continued development in the same direction.
Electrolux B is maximally negative on Investtech’s insider analysis, where the company’s CEO sold shares for 1,935,000 SEK on July 31, 2024. The stock is overall technically negative on a medium-term investment horizon (1-6 months).
Investtech’s Recommendation: Sell.
Investtech’s Methodology
Since 1997, Investtech has developed algorithms for technical analysis of stocks and identifying buy and sell signals, offering daily updated recommendations for stocks on the Stockholm Stock Exchange.
Every day, Investtech’s algorithms identify the most optimal trend channels, support and resistance levels, and price formations for short, medium, and long-term investment horizons. With large datasets growing every day, Investtech has researched the development of buy and sell signals from these technical indicators, providing extensive statistics on trends, among others.
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