Technical Update - DSV Rebound potential could be cut short. Strong overhead resistance

Technical Update - DSV Rebound potential could be cut short. Strong overhead resistance

Equities 2 minutes to read

Kim Cramer Larsson

Technical Analyst, Saxo Bank

DSV unfolding double bottom rebound picture with a rising wedge pattern. Double bottom pattern has potential to 1,050 but could be cut short and down trend resume

DSV is short-term forming a rising wedge like pattern (two black lines) following a double bottom formation. After DSV closed above DKK 952.40 the double bottom pattern is confirmed indicating a potential target price around and indicates 1,050 as illustrated by the two vertical arrows.
However, the upside momentum could be cut short if DSV is rejected at the upper rising trend line in the wedge and at the 0.382 retracement around 1,000.
55 and 100 SMA’s are declining indicating underlying bearish sentiment which is likely to put a dampener on the upside potential.
However, the real test will be the gap 1,000-1,032.50 from September will be crucial. IF DSV cannot close that gap i.e., close above 1,032.50 the medium-term outlook remains bearish. If DVS slides back and closes below 933 the September low at around 858 could be tested and lower price levels are likely.
Indications of that scenario to play out is if DSV breaks bearish below the lower rising trendline in the rising wedge and RSI gets rejected at the 60 threshold and instead closes below its lower rising trendline.

Medium term DSV has jumped back into the consolidation area back from Q4 2020. Trend is still down and there is no divergence on RSI indicating we could see lower levels.
To reverse this bearish medium-term outlook a close above 1,110 is needed.

Longer-term view. On monthly time period RSI is still above 40 i.e., still showing positive sentiment. A close below 40 will reverse that and could send DSV lower towards DKK 700

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Macro: It’s all about elections and keeping status quo
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
FX: The rate cut race shifts into high gear
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Equities: The AI and obesity rally is defying gravity
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
Fixed income: Keep calm, seize the moment
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities: Is the correction over?
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.

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Technical Update - DSV Rebound potential could be cut short. Strong overhead resistance

Kim Cramer Larsson

DSV unfolding double bottom rebound picture with a rising wedge pattern. Double bottom pattern has potential to 1,050 but could be cut short and down trend resume

Latest Market Insights

Quarterly Outlook 2024 Q2

01 / 05

Macro: It’s all about elections and keeping status quo

FX: The rate cut race shifts into high gear

Equities: The AI and obesity rally is defying gravity

Fixed income: Keep calm, seize the moment

Commodities: Is the correction over?

Macro: It’s all about elections and keeping status quo

FX: The rate cut race shifts into high gear

Equities: The AI and obesity rally is defying gravity

Fixed income: Keep calm, seize the moment

Commodities: Is the correction over?

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Technical Update - DSV Rebound potential could be cut short. Strong overhead resistance

Kim Cramer Larsson

DSV unfolding double bottom rebound picture with a rising wedge pattern. Double bottom pattern has potential to 1,050 but could be cut short and down trend resume

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Latest Market Insights

Quarterly Outlook 2024 Q2

01 / 05

Macro: It’s all about elections and keeping status quo

FX: The rate cut race shifts into high gear

Equities: The AI and obesity rally is defying gravity

Fixed income: Keep calm, seize the moment

Commodities: Is the correction over?

Macro: It’s all about elections and keeping status quo

FX: The rate cut race shifts into high gear

Equities: The AI and obesity rally is defying gravity

Fixed income: Keep calm, seize the moment

Commodities: Is the correction over?

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