Technical Update - Hennes & Mauritz testing key support. Will it hold?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
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
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