The OMXSPI index on the Stockholm Stock Exchange showed a positive trend on Tuesday, closing at 973 points, reflecting a 0.35 percent increase. Over the past 20 days, the index has increased in value on 15 occasions. In the last month alone, the index has surged by an impressive 7.15 percent. This recent upward momentum has broken through the long-term resistance level at 890 points on the graph, indicating a bullish trend. Additionally, a support level has been identified around 824 points, suggesting a strong foundation for the index. The rising trend channel, as identified by Investtech’s algorithms on a medium-term basis, is currently being tested.
The growing optimism in the market is evident in Investtech’s short-term Bullish Index, which has risen by 45 points since hitting a low about a month ago. Currently, the Bullish Index stands at 62 in the short term. This index, ranging from 0 to 100, serves as an optimism indicator by showcasing the percentage of stocks on the Stockholm Stock Exchange that have received a buy signal as their latest signal. A value between approximately 45-55 indicates a balance between pessimists and optimists. On a long-term basis, the index is at 40, signaling a predominance of pessimism. Therefore, there is a cautious overrepresentation of optimists in the short term, while pessimists dominate in the long term.
Investtech’s Insider Barometer tracks the number of buy and sell transactions conducted by insiders in listed companies. In the last month, there have been 614 purchases and 150 sales, resulting in a buy ratio of 80 percent. On an annual basis, the buy ratio stands at 78 percent. According to Investtech’s research, stocks with strong insider trading tend to outperform the market statistically.
Overall, the OMXSPI is technically neutral on a medium-term basis (1-6 months). For long-term investors, we recommend staying invested in the market.
Investtech’s Recommendation: Neutral
In conclusion, the OMXSPI index is showing signs of resilience and potential for further growth in the coming months. With a strong insider buying trend and positive technical indicators, investors may find opportunities for profitable trades in the Swedish stock market. Stay tuned for more updates on this dynamic market situation.