Ericsson Telephone Co., founded by Lars Magnus Ericsson in 1876, is a Swedish multinational networking and telecommunications company. Over the decades, it has played a pivotal role in the global telecommunications industry, pioneering mobile and wireless communication technologies, establishing global network standards.
Ericsson 1W Chart Analysis, September 14, 2023
Ericsson – is the channel about to break?
The company has been in a downward trend since the spring of 2022 – this is a fact, at least regarding price. But what if we look at technical indicators?
The trend is your friend – in this case, the trend lasts as long as 16 months. The bearish camp also supports price trading below EMA100 and EMA50, as well as the fact that the shorter of the moving averages is below the longer one. The bull camp also received a big blow in the form of a clearly outlined red candle wick, which for now also negates a breakout from the downward channel marked in blue.
So, what supports buyers? This is primarily the golden cross on the MACD (green, vertical line), which occurred in November last year. Typically, this type of crossing precedes upcoming increases. Moreover, the MACD and RSI oscillator are rising, marking a bullish divergence. Closing the weekly candle will be crucial for defining the direction of a trend. If it occurs above the upper limit of the descending channel and the RSI returns above the 50 level, it may favor the buying side.
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