Technical Analyst, Saxo Bank
Summary: GN Store Nord bounce after being beaten
Demant collapse after bullish break out
Rockwool could be range bound for a long time
Chemometic bubble implosion
Today's Market Quick Take from the Saxo Strategy Team
GN Store Nord had broken above resistance at 190.75 yesterday – maybe in anticipation of a positive earnings announcement pre-market today. That didn’t happen and GN Store Nord opened 20% lower this morning but have bounced back currently trading above the lower rising trend line.
If closing above 159.60 the uptrend is still intact. A close below and GN is likely to be hit by a sell-off down to previous lows. A close below 144.30 is likely confirm and fuel the down trend
For GN to resume uptrend a close of the gap created this morning would be minimum requirement.
Medium-term the uptrend is in jeopardy if GN closes below 144.30. Weekly RSI already showing negative divergence will have closed back below 40 strongly indicating a test of the Q4 2022 trough at around 119.
Demant broke bullish out of its Symmetrical triangle like pattern last week but have been rejected at the resistance at around 237.80 and the around the 200 daily Moving Average. A close below 218 could add to the current selling pressure for Deman to drop to test support at around 201.
Demant was also rejected at the 200 weekly Moving Average and it will be a struggle to penetrate it. Demant is likely to be range bound between 175 and 241 for quite some time.
For Demant to resume uptrend at close above 238 is needed. Daily RSI is showing positive sentiment indicating Demant is likely to have another go at the resistance level
Chemometic, once a darling on the Exchange is taking a serious beating this morning. The stock has been in a downtrend for some time however, and it seems like a collapse of a bubble. Monthly chart clearly shows the Bubble pattern.
Some support here around the 55 monthly Moving Average but no strong support until the Consolidation area at around 449-368.
2024: The wasted year
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.
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.
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.
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 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.
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.
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.
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.
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 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.