Short term
Trade view / 19 September 2016 at 5:10 GMT

Bounce in Boliden looking for a break higher

Instrument: BOL:xome
Price target:
Market price:

Swedish mining and metal processing company Boliden (BOL:xome) has had a good run since January this year. Thus far managing an almost 100% appreciation in value off those lows. On August 15 the stock put in its current peak, aligning in time and price, and warning us that the uptrend would be put to the test.

Since August 15 BOL:xome has retraced SEK 196 to SEK 175. At the time of the low on September 12 we have seen a bullish divergence on the daily Stochastic indicator, which is indicative of at least a first cycle lower has seen a completion.

As the longer term prospects are yet to be hinted at by the market, by either managing to print new highs above SEK 197 or new lows below SEK 175, the current bounce has room to continue for a while longer. Key resistance is now found at SEK 183, if this stock can manage to break above this level, SEK 190 should be next. 

Management and risk description

The plan is to see if we can get a break above SEK 183. If we do this is a signal for the current bounce to continue to SEK 190. The stop could initially be placed at SEK 179, which is the low of the bullish September 15 candle.

As always with breakout trades, the risk to this setup is a quick break higher which is then reversed lower quickly only to take out our stop. A break below SEK 175 would be indicative of a move lower to SEK 169 and SEK 157.


Entry: buy a break above SEK 183.

Stop: SEK 179.

Target: SEK 190.

Time horizon: about one week.

Boliden daily chart
Boliden daily chart
Boliden daily development chart
Boliden daily development chart
Source: all charts Saxo Trader. Create your own charts with SaxoTrader; click here to learn more 

– Edited by Gayle Bryant

For more on equities click here

Non-independent investment research disclaimer applies. Read more
Johan Berntorp Johan Berntorp
One can use a potentially bullish open to square this position for a short term profit and await further action and see if we can break SEK191.
Johan Berntorp Johan Berntorp
As an alternative move the stop to SEK 183 and wait and see if we can hit SEK 191.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. 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 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 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 or as a result of the use of the 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. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. 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 ourtrading 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 Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail