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.