ERICSSON (LM) TEL-SP ADR (ERIC) Stock Technical Analysis
NASDAQ:ERIC - Nasdaq - US2948216088 - ADR - Currency: USD
Overall ERIC gets a technical rating of 8 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, ERIC is showing a nice and steady performance.
Besides having an excellent technical rating, ERIC also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 8.67. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 8.50, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ERIC in the last couple of days, which is a good sign.
- Behavior of large players is measured by the Effective Volume indicator. This indicator inspects the 1 minute timeframe looking for high volume transactions.
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When analyzing the support we can see 2 important areas.
- A support zone ranging from 8.21 to 8.50. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
- Support @7.50 from a trend line in the weekly time frame.
We can see 2 important resistance areas.
- Resistance @8.67 from a horizontal line in the weekly time frame.
- A resistance zone ranging from 8.90 to 8.91. This zone is formed by a combination of multiple trend lines in the daily time frame.
The Technical Rating and Setup analysis above combine different indicators and trends in different timeframes. Individual signals from indicators may give more contradictive signals and should always be interpreted in the more global context.
| Indicator | Value | Signal | Comment |
|---|---|---|---|
| ChartMill Long Term Trend Indicator | UP | POSITIVE | The long term trend for ERIC is up. |
| ChartMill Short Term Trend Indicator | UP | POSITIVE | The short term trend for ERIC is up. |
| ChartMill Relative Strength | 82.18 | POSITIVE | ERIC has a high relative strength, it outperformed 82.18% off all stocks on the market. |
| Simple Moving Average/SMA (20) | DOWN | MIXED | The current price of ERIC is above a declining SMA(20). |
| Simple Moving Average/SMA (50) | UP | POSITIVE | The current price of ERIC is above the rising SMA(50). |
| Simple Moving Average/SMA (200) | UP | POSITIVE | The current price of ERIC is above the rising SMA(200). |
| Relative Strength Index/RSI (14) | 56.5 | NEUTRAL | The RSI value for ERIC is a neutral value. |
| Moving Average Convergence Divergence/MACD (12, 26, 9) | 0.02 | POSITIVE | The MACD value suggests ERIC has a positive trend. |
| Stochastics (14,3) | 93.94 | OVERBOUGHT | The high Stochastics value suggests ERIC may be overbought. |
| Average True Range in percent/ATR (20) | 1.49 | LOW VOLATILITY | The low ATR as a percentage value for ERIC suggests low volalility. |
| Average Directional Index/ADX (14) | 9.57 | NEGATIVE | The low ADX value for ERIC suggests a weak or negative trend. |
Important!: this is just an example which is fully automatically generated based on the analysis above and should in no way be interpreted as a suggestion. Always make your own analysis and determine your own entry and exit points.
| ENTRY | EXIT | DISTANCE | CAPITAL |
|---|---|---|---|
| 8.68 | 8.02 | 0.66 (7.60%) | 13.15% |
| An entry @8.68. This is a Buy Stop order right above the resistance zone. | An exit @8.02. This is a Stop Loss order right below the 10 day low. | The worst case loss on the trade is limited to 0.66 points, which is 7.60%. | When investing 13.15% of your capital in this trade, your total portfolio risk will be 1.00%. |
- The generated setup is based on the nearest support and resistance areas. If you are looking for a more long term trade, probably a wider stop is advisable.
- This trade setup was generated fully automatically and should not be interpreted as trading advice. Always check the related news for upcoming earnings or other events. Make your own analysis and trade at your own responsibility.
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