Our Sweden stock market forecast published 9 months ago (!) is materializing. We identified the potential of a secular (!) bullish breakout in Swedish stocks. Interestingly, this now is happening. It happens at the same time a bullish breakout takes place in Switzerland: a bullish Switzerland stock market forecast for 2020 (SMI). Something is happening over in Europe, seems to become an interesting place for investors? This really suggests we need to start looking for a top investing opportunity in 2019 in European countries.
This is the recap of our Sweden stock market forecast published last year.
The setup of Sweden’ stock market, per the Dow Jones Sweden Stock Index included below, is simply gorgeous. Note a couple of important things on this chart:
- We are at at the same point as in 2001.
- This is the 4th attempt to breakout.
- The continuous series of higher lows is outstanding.
All these factors on the chart suggest a bullish outcome.
That’s what we wrote 9 months ago when the Dow Jones Sweden Stock Index was trading at 960 points. It is happening right now with a breakout above that same level. The Swedish stock market now trades at 1018 points.
As the up-to-date Swedish stock market index chart shows below it finally breaks above its GIANT triangle pattern which is in the making for 2 decades!
As long as there are no major incidents in Europe, politically nor economically, we expect Sweden’s stock market to be wildly bullish in 2019 and 2020.
We see prices rising within the confines of channel (1) which might bring Sweden’s stock market 30% higher in 2019 and 2020.