Stockholm Stock Exchange’s broad OMSXPI index surpassed the 1000-point mark with a 1.01% increase on Tuesday, closing at 1004 points. This surge marks a 5.0% increase in the index over the past week, reaching levels not seen since October 2024. The overall trend indicates a horizontal pattern in the medium term, with potential for further upward movement if it establishes itself above the 1000-point threshold. The next resistance level is at around 1020 points, while support can be found at 948 points on the downside.

Investtech’s short-term Bullishness Index currently stands at 50, signaling a balance between optimists and pessimists in the market. On a long-term basis, the index is at 39, indicating a prevalence of pessimism among investors. Additionally, Investtech’s Insider Barometer reveals a high proportion of insider buying activity, with 79% of transactions being purchases in the last month and on an annual basis. Historically, stocks with strong insider buying tend to outperform the market, as indicated by Investtech’s research.

Looking at the technical outlook for the OMXSPI index, it remains neutral in the medium term (1-6 months). Therefore, long-term investors are advised to maintain exposure to the market.

In anticipation of the upcoming annual report, the technical analysis for AddLife, a life science company, appears positive. The stock price is trending within an upward channel identified by Investtech’s algorithms for the medium term. This bullish trend suggests growing optimism among investors and serves as a strong technical buy signal. Furthermore, the recent formation of an inverse head and shoulders pattern on January 21 reinforces the bullish sentiment, with support at 129 SEK and resistance around 168 SEK.

AddLife’s insider analysis from Investtech is highly positive, supporting the overall bullish outlook for the stock in the medium term. However, it’s important to note that market reactions to the upcoming earnings report on February 5, 2025, could quickly alter the technical landscape.

In the technology sector, Truecaller exhibits strong technical strength, with a breakout above the trendline indicating increased buying momentum. The stock price has surged following a buy signal from a rectangle formation in October, with the RSI confirming strong positive momentum. Truecaller’s positive insider analysis and overall bullish technical outlook for the medium term further support a buy recommendation from Investtech.

Conversely, Smart Eye, a technology company, shows a negative technical outlook with a significant decline in the stock price since mid-2024. The downward trend suggests a bearish sentiment among investors, with resistance at around 63 SEK and support at 43 SEK. Smart Eye’s maximum negativity on Investtech’s insider analysis, coupled with the CEO’s recent substantial stock sales, reinforces the bearish stance. Therefore, Investtech recommends selling Smart Eye shares for the medium term.

In conclusion, the insights provided by Investtech’s detailed technical analysis offer valuable guidance for investors seeking to navigate the complexities of the stock market. By leveraging these research-driven recommendations, investors can make informed decisions to optimize their portfolios and capitalize on market opportunities.

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