Technical Update - Vestas broken sideway range but hitting resistance. Can it break it ?
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Vestas Wind broke bullish out of its sideways range yesterday with a close above 184, but the 200 Simple Moving Average seems to be too strong to break, the share now being rejected twice.
However, RSI is above 60 i.e. showing positive sentiment indicating further upside is likely.
On the weekly chart the medium-term falling trend line is close to be tested. If Vestas can close above its 200 daily SMA and above the falling trendline there is room up to around 220-225.
If Vestas share price slips back below 184 the short-term bullish trend could be at risk. However, for Vestas share to reverse its short-term uptrend a close below 156 is needed.
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