MOWI ASA (MOWI) is the world's largest producer of Atlantic salmon with operations in Canada, Chile and Europe. Being a salmon producer, the company is highly sensitive to the price of salmon . The price of salmon has been decreasing in 2020 and now trades at circa 5.15 euros per kilogram of salmon . The suppressed salmon price should affect revenues negatively which, short term, could press the stock price down further.
Trend, stop loss and price target
I believe a trend has formed from the June high 2020 to present date. If this belief is accurate, the trend line should act as a good place for a stop loss at 179.50 Norwegian crowns ( NOK ).
In the same spirit, I set my price target at the July lows of 165.15 NOK .
Risks
Opportunities
Trend, stop loss and price target
I believe a trend has formed from the June high 2020 to present date. If this belief is accurate, the trend line should act as a good place for a stop loss at 179.50 Norwegian crowns ( NOK ).
In the same spirit, I set my price target at the July lows of 165.15 NOK .
Risks
- Increase in salmon price (for example due to speculation) while MOWIs sales remains high.
- Decreased global salmon production while MOWIs production remains high.
- Increased demand of salmon , for example due to markets opening up for MOWI.
Opportunities
- Decrease in salmon price.
- Decreased production, for example due to disruption in production.
- Trade restrictions, for example due to virus outbreak.
Trade active
Trade closed manually