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Technical Update - Vestas Wind resuming uptrend. Further upside in the cards

Equities 2 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Despite weak earnings Vestas Wind is testing short-term resistance at 205.35. A likely close above will confirm short-and medium-term uptrend with 30% upside potential


Vestas Wind. 190 seems to be the Bull/Bear pivot level in Vestas. The level has been challenged a couple of times the past two months but managed to close above every time. At the time of writing Vestas is trading above the short-term falling trendline suggesting uptrend is resuming.
If Vestas closes above 205.35 Bull trend is resumed.
RSI is showing positive sentiment but with divergence. However, if RSI closes above 60 threshold and above its falling trendline we are likely to see higher levels in Vestas above 217.45

Vestas is in a medium-term uptrend. The uptrend will further be confirmed by a break above 217.45 with potential to 282.50. Resistance at around 241.90. This bullish picture is supported by RSI showing positive sentiment
For this bullish picture to be reversed a close below 186.50 is needed.

vestas d 8feb
Source all data and charts: Saxo group
vestas w 8feb

Vestas and the cloud weekly : Vestas was rejected at the weekly cloud Span around 213.68. If Vestas manage to close above January peak at 217.45 Vestas will b4e above the cloud further confirming the bullish picture.

vestascloud w 8feb
RSI divergence explained: When instrument price is making a new high/low but RSI values are not making new high/low at the same time. That is a sign of imbalance in the market and an weakening of the uptrend/downtrend. Divergence or imbalance in the market can go on for quite some time but not forever. It is an indication of an exhaustion of the trend



Author holds a long position in Vestas

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