Squawk / 08 September 2015 at 13:07 GMT
Client Experience / Saxo Bank
Denmark
Hi all,
For those interested in technical analysis and stocks, here is a quick technical analysis of the Danish Pharmaceutical company Zealand Pharma (ZEAL:xcse).

Background:
ZEAL experienced an unsustainable upwards move from start juli which culminated in an all-time high of 166.XX on juli 30th.
From August, ZEAL is forming a series of lower highs and lower lows which indicates an intermediate countertrend. more bearish IKH signals confirm this.

Going forward:
The uptrend from october 2014 (green trend line) have had ca. 4 touch-points, which could indicate a strong potential for support. For the same reason I am looking for a clean break and subsequent consolidation below the trend-line in order for me to go short.
At a bullish break of the downwards channels (blue lines) + bullish IKH signals, I'd look for a good long entry. I'll be looking closely at how volume leading up and following a break to the up- or downside.
Either way September should be interesting.
4y
Simon Kjaer Simon Kjaer
Comments are obviously welcome :)
4y
pkl pkl
First you should argue why TA is relevant for Zealand Pharma. Does TA give good predictions for that company - e.g. did you perform a historical analysis? My guess is that you have not.
4y
Simon Kjaer Simon Kjaer
Hi pkl,
Thank you for your comment. TA is a controversial method of analysis as it never accounts for the fundamental factors of a company or economy. Your comment can be extended to the applicability in general, but this would mean that every time someone posts a TA, he or she would have to defend the method tooth and nail. Various methods of TA has been subject to statistical analysis to determine the its reliability, but ultimately it boils down to which method of analysis you prefer.
That being said, I am not blind to the fact, that extreme negative or positive news can overrule any type for analysis on any day.

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