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SCA_B Swedish Cellulose Here we see the hyper bullish SCA_B at the end of a 5 wave cycle having out performed most Swedish stocks since the 2008 Financial Crisis. Price Spiked up beyond a 6.18 projected fib trend line based on the first impulse wave after which price has sold off very quickly. Exports have been given a steady and then huge boost by the devaluation of the Swedish Krona against the EUR and USD which in the final phases of a EURSEK bull run coincided with massive vertical price action. Read in conjunction with the Swedish Property market which is in decline since topping out in July 2017 this marks an interesting period for Swedish production and perhaps signals a wider based economic retraction which was fuelled by quantitive easing and a devaluation of the Swedish Krona. Drawn in is a potential ABC correction - however the timing needs to be assessed using fib time analysis. Regardless such a vertical price movement tends to retrace quickly as price has not established any resistance levels the first being the end of the intermediate wave 4 retracement. For educational purposes this represents an amazing shorting opportunity - with a short sell position placed on confirmation and a stop placed above the high. Bearish - Short!
OMXSTO:SCA_BShort
by J00Z1
Swedebank Series ASwedebank Series A shares forms part of a series of charts outlining Swedish stocks related to the current residential correction in Sweden. Following a major run established at the beginning of 2009 and aided by the Swedish governments quantitive easing program Swedebank shares has completed a potential 5 wave sequence and is currently correcting. The correction has continued down through a series of bearish rallies and has broke through a positive median line set and is now being rejected by the 200ma. Previous rallies have occurred when RSI levels have gone under the 30 mark as such it is possible that the correction will continue over the next year with a potential relief rally forming in 2019. RSI has shown Bearish divergence since a high in 2013, confirming a potential trend reversal in 2015 and in 2017. The high in 2017 and following correction is established through multiple share prices related to the construction sector. This relief rally may only be one of a series of corrections and it is important to keep an eye on Riksbank policy over the coming year where interest rates will be changed from -0.05 to positive levels. If the quantitative easing program is reduced by Riksbank this will increase mortgage repayment levels and rise borrowing costs. The effects of this are to be watched as Sweden currently has a household debt to GDP ration of 180% and the Swedebank will be put under pressure to ensure repayments are made in order to service debt built up during the boom cycle. If price continue to decline it is possible that a death cross will be formed for the first time since 2008 and share prices should be watched closely alongside the housing market. Two price markers are set out one related to the current bear flag that has started to break down and the second one related to major support at trend based and complete fib levels. Importantly it should also be noted that the rally formed after 2008 failed to eclipse the previous high set in 2007 and while marginal this constitutes a lower high and a sign of a potential downtrend.
OMXSTO:SWED_A
by J00Z1
Boliden AB - Interest of smart money investors1. There is selling climax at number 1 on the chart, small investors, for fear of strong declines, sell their stocks. During this, large investors started the buying process. 2. There is a large volume on the downward wave, but the price does not move lower, it means that while one side of the market was selling their stocks intensively - the other side of the market bought them. 3. The price has moved below the minimum level of selling climax, it was a controlled check by large investors - is there still a large supply on the market. The low volume means that the supply was mostly bought. Summary If the price is above the consolidation channel - it is worth to buy stocks at a correct. Important: The breakthrough of the upper level of consolidation should take place at the increased volume.
OMXSTO:BOLLong
by Suminski