Technical Update - Nordea Bank ready to break out of triangle pattern. Which way is it going to be?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Nordea Bank (DKK) is forming a symmetrical triangle like pattern on the medium-term time horizon, tugged in between the 55 and the 200 weekly Simple Moving Averages (SMA)
Break out direction will be a strong indication of the medium-term trend. If breaking out bearish Nordea could decline to support around DKK 52.30 but there could be downside to around 46-45. Support at 58.46
If breaking out bullish Nordea is likely to test Q1 2022 peak at 85.11
Currently RSI is showing negative sentiment and if RSI closes below its lower rising trendline lower price levels should be expected.
However, RSI is currently rising and if it closes above 60 it is back in positive sentiment with higher levels in the cards.
Short-term Nordea is in a downtrend being rejected at the 200 daily SMA several times. A close above the falling trendline, and the 200 daily SMA followed by a daily close above 72.95 will confirm a trend reversal and Nordea to build an uptrend towards 85
RSI is at the time of writing above 60 and if it closes above there is strong indication the bullish scenario to play out
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