Top Stocks to Buy Now – One to Sell

Global Stock Market Update: Turbulent Times Ahead

It has been turbulent times in the global stock markets recently. During the first trading day of the week, the market was nearly unchanged (-0.02 percent) and the index closed at just under 953 points.

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 indicates a weaker rate of increase initially, and the price has reached the target price at 928 points after the break of the DT formation. Support is found down towards 890 points in the long term and 860 points in the medium term. Resistance is found around 966 points and 1000-1013 points.

Investtech’s short-term Bull Index stands at 36 on a short-term basis. The index ranges from 0 to 100 and is an optimism indicator showing the percentage of stocks on the Stockholm Stock Exchange that have 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 is 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 earnings season as many of the market’s companies will disclose their results for the second quarter of 2024. Many of the company insiders are prohibited from trading shares in their own company in connection with the report. This limits the number of insider transactions during this time of year. Investtech’s Insider Barometer shows the number of buy and sell transactions carried out by insiders in the market’s companies. In the last month, there have been 371 buys and 100 sells, corresponding to a buy ratio of 79 percent. The buy ratio on an annual basis is 80 percent. Investtech’s research shows that stocks strong in insider trading statistically outperform the market.

OMXSPI is technically neutral on a medium-term basis (1-6 months). The proximity to support and resistance levels, however, means that the technical picture can change quickly. We recommend long-term investors to always be invested in the market.

Investtech’s Recommendation: Neutral.

 

Image: Global Stock Market

Inwido, specializing in the manufacture of windows and doors, looks promising from a technical perspective. On the medium-term price chart, the price is developing within a rising trend channel identified by Investtech’s algorithms. This is a statistically good buy signal according to Investtech’s research results in over 35,000 similar instances.

A rising trend channel also signals increasing optimism among investors and that the company is in a positive development phase. There is no resistance in the price chart, and at pullbacks, the price has support at around 140 kronor. This is also a strong buy signal according to Investtech’s research results on the technical indicator of support and resistance. A strongly positive volume balance, with historically higher turnover on days of increase and lower turnover on days of decrease, strengthens the stock in the short term and confirms the positive trend.

Inwido is positive in Investtech’s insider analysis and the stock is overall technically positive on a medium-term investment horizon (1-6 months).

Investtech’s Recommendation: Buy.

 

Image: Inwido Stock Chart

Nivika, a real estate company, is developing within a rising trend channel on the medium-term price chart, indicating that the company is in a positive development phase where investor interest is increasing. In late March this year, buy signals from two inverse head and shoulders formations were also identified, indicating further upward movement.

There is no resistance in the price chart as the price recently broke through the resistance at around 43.00 kronor. This level thus transformed into a new support level.

Nivika Fastigheter B is positive in Investtech’s insider analysis, and the stock is overall technically positive on a medium-term investment horizon (1-6 months).

Investtech’s Recommendation: Buy.

 

Image: Nivika Stock Chart

A technically negative stock is G5 Entertainment, which develops and publishes games for smartphones, tablets, and personal computers. Initially, the price is developing in a falling trend channel on the medium-term price chart. This is a result of investors accepting lower and lower prices to sell out of the stock during a declining period. It signals pessimism among investors, and according to Investtech’s research on falling trends, further decline is indicated.

There is also no support in the price chart as the price has recently broken through the support level around 106 kronor, which then transformed into a new resistance level. This negatively impacts the analysis. A strongly negative volume balance indicates that sellers are aggressive while buyers are passive, weakening the technical picture and confirming the downward trend in the stock.

G5 Entertainment is overall technically negative on a medium-term investment horizon (1-6 months).

Investtech’s Recommendation: Sell.

 

Image: G5 Entertainment Stock Chart

Investtech’s Analysis Method

Since 1997, Investtech has developed algorithms for technical analysis of stocks and identification of buy and sell signals, offering daily updated buy and sell 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 that are plotted on short, medium, and long-term investment horizons. With large datasets growing daily, Investtech has researched the development of buy and sell signals from these technical indicators and has extensive statistics on trends, for example.

 

Analysis Summary:

The global stock markets are experiencing turbulence, with various stocks showing differing technical signals. While some stocks like Inwido and Nivika are presenting positive trends and are recommended for buying, others like G5 Entertainment are displaying negative trends and are recommended for selling. Investors should carefully consider these technical analyses and recommendations in their investment decisions to navigate the current market conditions effectively.

 

Disclaimer: The information provided is for educational and informational purposes only and should not be construed as financial advice. Always do your own research before making any investment decisions.