Technical Update - GN Store Nord. Bottom and reversal signal indicates strong rebound
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Bottom and reversal pattern in GN Store Nord signals turn around and further upside
DKK 113-156 is a wide range back from 2015-2016 that GN Store Nord now seems to be bouncing off from.
For about a year GN has been declining in a steep falling channel. But last week the share price formed at Bullish Engulfing candle which is an indication of a bottom and reversal.
Despite no divergence on RSI this could have been the ultimate low for GN Store Nord. A stronger rebound is not unlikely. A rebound to test the upper falling trend line (weekly chart). If closing above the trendline more upside is expected. 215.30- 266.30 is the key consolidation area that could be tested.
Very short-term GN Store Nord could face some resistance at around 158.80 where a minor correction should be expected. But if GN closes above 158.80 a strong move to 184 is not unlikely.
Look out for RSI. If it gets rejected at the 60 threshold a correction is likely. If closing above 60 there is more upside in the cards.
However, if the mood changes and GN closes below 119 i.e., below the low of bullish engulfing candle the down trend is likely to continue down to around 108.20. If closing below 108 there is no strong support before around 77.
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