After analyzing the Swedish stock market index, I noticed that values of telecommunications, network and banking companies started to depreciate.
There is a large volume on each of them so a price drop on OMX index is possible.
Companies such as SWEDBANK A, ERICSSON B, SV. HANDELSBANKEN A, TELIA COMPANY have been losing value for many months.
The swedish market index has had a very unhealthy bull period with a increase of almost 60% in 1 year, it did hit a major trendline this week and bounced, the rsi indicates overbought, i will probably place a short position when the market opens on monday
Melt up is here just like in 99/01, only question is for how long can it go on?
I see in best case we go to 2300 (~7%), but you never know may as well end in disaster next week, or even blow pass 2300.
Be careful out there, i'm starting to cut down on positions from here.
My analysis of OMX30
- Either bounce on trendline or continue down to next trendline and support.
- If we continue to the last trendline I want to be prepared for a Head-And-Shoulder even if it is to early to say right now.