This stock can easily rise very strongly in a short squeeze.

13 авг.

This stock can easily rise very strongly in a short squeeze. The company is the 10th most shorted share at Nasdaq Stockholm, and the company has a market cap of SEK 21.4 billion.

According to an overview from 09 August 2024, Sinch AB (ticker on Nasdaq Stockholm: SINCH) was number 10 of the 15 most shorted shares on the Stockholm Stock Exchange.

The Sinch-share (SINCH) has had some tough years on the Nasdaq Stockholm Stock Exchange in recent years now, and where the share has fallen from a peak of around SEK 200.00 in August 2021, and down to around SEK 14.00 in September 2022.

The share is currently traded at around SEK 25.00, and the company has a market cap with today's share price of around SEK 21.4 billion.

Technical Analysis of Sinch AB (ticker on the Nasdaq Stockholm Stock Exchange: SINCH)

After a very sharp decline from August 2021 to September 2022, and where the share, as mentioned, fell from around SEK 200.00 to around SEK 14.00. Today, the share is traded around SEK 25.00.

The stock has now over the past two years or so established a very large Symmetrical triangle formation.

Should there be a break upwards from this large symmetrical triangle formation, then a strong technical buy signal for the share will be triggered.

Looking at the shorter picture, the stock has broken out of a falling wedge formation, and also seems to be about to break above both the 50-day and 200-day moving averages.

There is considerable technical support for the share around the SEK 24.00 - 25.00 level, and where there is, among other things, technical support down towards the 50-day moving average.

Although such a strong technical buy signal has not yet been triggered for the Sinch-share, I believe that this is a share that may be well worth keeping a close eye on going forward now.

Should there be such a break upwards from this large symmetrical triangle formation, what will be indicated by potential for the share is marked with green dashed lines in the chart.

The potential for the share will then be up to around SEK 100.00 - 120.00 in 1-2 years' time. In other words, a significant potential will then be triggered for the share, which is currently traded at around SEK 25.00.

What could potentially trigger negative technical signals for the share would be if it had an established break down below the SEK 24.00 and 21.00 levels. This will then trigger a technical sell signal for the share.