OMXS30 at a sensitive situation…
OMXS30 continues to trade in a sensitive situation. Technically the index is overbought and has shown signs of potential weakness, right below a significant technical resistance area.
Last week Nasdaq OMX continued to move irregularly. Swedish stock index OMXS30 fell -0.2 percent, and closed the week at 1642.49. So far this year, the index has gained +8.3 percent, +11.7 percent adjusting for dividends.
Waiting sentiment dominated the past weeks development, before the upcoming earning season starting this week. In the U.S the season kicks off on Tuesday, and in Sweden on Wednesday with several index heavy stocks. The state of the market is looking strong, but this summer’s weakness in the U.S dollar highlights a bit uncertainty.
Amongst companies listed in OMXS30, Ericsson gained momentum and spotlight on news that Atlas Copco’s previous CEO Ronnie Leten takes over as chairman of the board.
The bank sector moved lower on increased worries on the Swedish and Norwegian housing market. Potential lower marginal and volume could be a wet blanket for the sector.
Looking at the weekly chart below, OMXS30 continues to hold up sentiment based on a long-term perspective. OMXS30 showed positive momentum when it broke resistance at 1600, and continues to trade closely to resistance 1660.
In case OMXS30 starts trading above this price level, potential further fuel could come to light, moving closer to upcoming significant resistance at previous all time high from 2015 at 1720.
Weekly chart of the OMXS30 source: Infront