NOKSEK – Sentiment turns Negative
16th January 2017
Last week’s strong decline in NOKSEK created a 5th down week from the last 6 and confirmed the negative RSI break with a move below the 21 week, offset, moving average. This in our assessment confirms a change of sentiment to bearish – ending the underlying positive tone that dominated last year.
In fact last year’s move saw NOKSEK gain almost 16% from low to high – peaking around 1.1000. Our Trend Table view was positive for the bulk of that time but although a slight concern is introduced by a trend of higher weekly lows that has yet to be breached our technical signals have changed to cautiously bearish.
We’re likely to continue to see volatility in NOKSEK and so it won’t be a straight line but there is now potential for the downside to extend to 38% and 50% correction points that come in at 1.0422 and 1.0244 respectively.
A weekly close the trendline would likely add to bearish NOKSEK momentum.
