Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
Technical Analyst, Saxo Bank Group
Vestas Wind is trading slightly higher after Earnings release this morning. Vestas has bounced from strong support at around 174.50 but is still stuck in a range between 174.50 and 193.50. Break out is needed for direction
The underlying sentiment is down illustrated by the negative RSI . RSI must close above 60 threshold to change that.
The daily Moving Averages are indecisive with the 55 and 100 declining and the 200 Moving Average rising.
Weekly chart is equally indecisive; Vestas is moving in a wide range between 215 and 174.50.
100 Moving Average declining and the 200 rising with the 55 almost flat.
However, share price is below all Moving Averages and below the Cloud (shaded area) indicating it is under pressure. On the other hand RSI is still showing positive sentiment.
If Vestas is sliding back closing below 174.50 it is likely to experience a sell-off down to the Q4 2022 lows “Consolidation area” around 150-130.
If closing above 193.50 a Double Bottom pattern will be confirmed with upside potential to 215 which is the top of the wide range Vestas has been trading in for the past year.
A close above the short-term falling trendline (daily chart) could be first indication of this bullish scenario to play out.
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)