Stockholmsbörsen: A Technical Analysis
On Tuesday, the Stockholm Stock Exchange’s broad OMXSPI index rose by 0.69 percent, closing at 983 points. This marked the fifth consecutive day of gains for the index. Looking at the technical picture on a medium-term basis, a rising trend has been identified, although the main price movement has been horizontal since May. Breaking through the previous resistance at 970 points is a buy signal, with the resistance now turning into a new support level. New resistance is found at 1010 points.
Investtech’s short-term Bull Index is currently at 38, indicating optimism in the market. On a long-term basis, the index stands at 35, showing a bias towards pessimism among investors.
According to Investtech’s Insider Barometer, there have been 665 insider buys and 125 insider sells in the past month, resulting in a buy ratio of 84 percent. The annual buy ratio stands at 79 percent. Research by Investtech indicates that stocks with strong insider trading tend to outperform the market.
Overall, OMXSPI is technically weakly positive on a medium-term basis (1-6 months). Long-term investors are advised to remain invested in the market.
Investtech’s recommendation: Weakly positive.
Gränges: A Strong Technical Outlook
Manufacturing company Gränges is showing a positive technical perspective. The stock price is following a rising trend channel identified by Investtech’s algorithms on the medium-term price chart. Over the past two years, investors have been willing to pay more for the stock, leading to higher highs and higher lows.
The stock is currently trading between support at around 113 SEK and resistance at around 145 SEK.
Gränges receives a highly positive rating in Investtech’s insider analysis and is overall technically positive on a medium-term investment horizon (1-6 months).
Investtech’s recommendation: Buy.
EQL Pharma: A Potential New Year’s Rocket
EQL Pharma, a pharmaceutical company, is showing strong technical strength and meets the criteria to be considered a potential new year’s rocket. Historically, small companies with low liquidity have performed well around the new year. With an average daily turnover of only 1.65 million SEK, EQL Pharma qualifies as a small company.
On the medium-term price chart, Investtech’s trend algorithm has identified a rising trend channel. Investors have been accepting higher prices for the stock over the past year, signaling increasing optimism. There is no resistance in the price chart, and the stock finds support around 61.00 SEK. This trend pattern and lack of resistance make EQL Pharma a strong candidate as a potential new year’s rocket.
EQL Pharma receives a weakly positive rating in Investtech’s insider analysis and is overall technically positive on a medium-term investment horizon (1-6 months).
Investtech’s recommendation: Buy.
Camurus: A Bearish Outlook
Biotechnology company Camurus currently has a negative technical outlook on a medium-term investment horizon of 1-6 months. Investtech’s algorithms have identified several negative technical signals. The trend is negative, with investors selling at lower levels since the year high around 750 SEK in late August.
On November 15th, a sell signal was identified from a head and shoulders formation, indicating further downside. The stock has broken down through support at around 600 SEK, which has now become a new resistance level. The nearest support is around 440 SEK.
Camurus receives a weakly negative rating in Investtech’s insider analysis and is overall technically negative on a medium-term investment horizon (1-6 months).
Investtech’s recommendation: Sell.
David Östblad, Analyst at Investtech