Ambu bullish update

Yesterday Ambu A/S fell from 262 down to 210 (210,60) within the first hours. During the day, the price rose to 219 at the closing hour.
The reason for the drastic fall was because of the 10% shareholder Chr. Augustinus Fabrikker sold half of their shares in one time. nearly 3 billion DKK was the total value of this 13.5 mio shares sell-off.

We are still bullish and believe Ambu A/S will return to MA50 soon. The backside of this sell-off from Chr. Augustinus Fabrikker is, that it could create nervousness among other shareholders.
We are confident in Ambu and will show you why.
If you take a look at the original post, regarding AMBU successful MA50 test you will see, that the price is touching the MA50 line for the 5th time since the new year 2018. Each time, the price has gone down to this area, the price started to go up again.

Below you will see today’s chart of Ambu A/S with the MA50 line being crossed. You might wonder why the price ends down at 210 and not 200 or 215 ? Because of Technical Analysis Indicator: Moving Averages. Explanation will be given below this chart.

Ambu bullish update

Ambu bullish update

When talking about Technical Analysis, one of the main and most used indicators are MA (moving Averages, the averages of price during a number of days). Like MA9 = Averages of prices for the last 9 days and MA200 are the average price for the last 200 days etc.
The MA calculations are also being used in other Indicators like MACD etc.

In the Technical Analysis of Ambu from September 3, we used MA50 as a support line. This means that this area has a strong support and the price might go up from here again (as the other 4 times this year).
It is impossible to guessed or predict such sell-off from Chr. Augustinus Fabrikker.
But, as you will see next, we are confident the price will go up again from here. Why is that?
Because we knew, that when the price broke MA50 line like yesterday, then the next stop would be 210. How can we know that?
To make a long story short, there are some certain levels of MA that are important. For D1 timeframe, we often operate in MA20, MA50, and MA200.
So in this case, when the MA50 line was crossed, we look at MA200. If MA200 is crossed, then we make a new Analysis, because then we might be in trouble and might expect the trend to turn.

Take a look at this nice chart. The price stopped at MA200 precise.
Now we are waiting for a few green candles and positive volume to make the price go up again.

Ambu bullish update

Ambu bullish MA200 test

In case, the price goes below MA200 line, then we sell reconsider.
Set Stop Loss around 200.