Trade view /
15 June 2016 at 5:08 GMT
A couple of weeks back, more specifically on May 18 (please see this trade view: Two ways to play Volvo's decline
), we identified the bearish prospects for vehicle manufacturer Volvo (VOLVb:xome). The stock has turned lower and is closing in on the second cycle date outlined in the earlier trade view.
The stock doesn't have to turn at the outlined date and could still be heading for SEK 81. But given oversold conditions, you might want to stay alert for a bounce.
A head of the outlined target level at SEK 81, and we have the SEK 85 area as an interesting inflection point.
Unless we see a break of SEK 85 before June 17, you might want to take profits on this trade, and await further price action. If however we manage a close below SEK 85, we are likely to be heading to SEK 81. In any case, the stop could be moved to SEK 95.
Stop: SEK 95.
Target: SEK 85 and SEK 81.
VOLVb:xome daily chart
Source: Saxo Bank. Create your own charts with SaxoTrader; click here to learn more.
— Edited by Robert Ryan
Non-independent investment research disclaimer applies. Read more