Technical Update - Hennes & Mauritz testing key support. Will it hold?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
The past 12 months Hennes & Mauritz has been trading in a falling trend and is now testing its 2020 lows at SEK98.13.
If H&M closed below 98 it is likely to extend the down trend to 2000 lows around SEK66. There is minor support at around 79.45.
RSI is below 40 on both Weekly and Monthly supporting the bearish view.
To reverse the trend H&M needs to close above 140. A close above 142.70 would place the share in neutral with potential to move higher. However, the 200 Weekly SMA (Simple Moving Average) will provide resistance. The rebound or trend reversal scenario could unfold if RSI closes above its upper falling trend line on the weekly chart
Latest Market Insights
Q4 Outlook 2022: Winter is coming
- Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.