Sparebanken Sør : Close to an important technical resistance levels
Entry price | Target | Stop-loss | Potential |
---|
NOK 99.6 |
NOK 107.3 |
NOK 95.2 |
+7.73% |
---|
Sparebanken Sør shares are closing in on important technical levels. The technical chart pattern suggests that the currently tested resistance will be broken and new upside potential arises while volatility is likely to increase. Investors could get ahead of this signal in order to benefit from a better risk/reward ratio.
Strengths● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Historically, the company has been releasing figures that are above expectations.
● Its low valuation, with P/E ratio at 10.16 and 8.94 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
Weaknesses● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is close to a major daily resistance at NOK 101, which should be gotten rid of so as to gain new appreciation potential.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 100 NOK
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