close icon

Swedbank to Benefit from a Bullish Elliott Wave Cycle

It took Swedbank, one of Sweden’s biggest financial institutions, ten years to return to its pre-crisis glory. The stock rose from as low as SEK 14.70 in March 2009 to SEK 234 in February 2017 – less than SEK 2 below its February 2007 peak.

And just when it looked like a new all-time high will soon be reached, the situation started to change. Swedbank found itself in a money-laundering scandal, which eventually led to the ousting of CEO Birgitte Bonnesen and the resignation of Chairman Lars Idermark.

The market, always easily intimidated, slammed the stock to SEK 127.20 by late-March 2019, down 46% from the 2017 high. But instead of automatically assuming things are only going to get worse, let’s see what the Elliott Wave principle has to say about Swedbank’s prosects.

Swedbank stock to find Elliott Wave inspiration

The weekly chart reveals that Swedbank’s 2009-2017 rally has the shape of a textbook five-wave impulse pattern, labeled 1-2-3-4-5. An impulse to the upside is generally a good thing for investors. This pattern indicates the direction of the larger trend.

The problem is that before the trend resumes, a three-wave correction in the opposite direction follows. In Swedbank’s case, the correction seems to be a simple A-B-C zigzag with a triangle in wave B. It erased almost half of the bank’s market capitalization.

Swedbank Stock Looks Ready to Recover

The good news is that this decline, albeit severe, fulfilled its purpose to complete the 5-3 wave cycle which began 10 years ago. According to the theory, it is time for the bulls to return and lift Swedbank stock to new all-time highs in the long-term.

If this count is correct, first targets above SEK 240 are quite reasonable. With Swedbank stock currently at SEK 156, total returns of over 50% are there for the taking.

Did you like this analysis? Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Ulta Beauty No Longer a Wall Street Darling

Ulta Beauty ‘s phenomenal uptrend started from $4.11 in March 2009 and did not stop until $368.83 in mid-July 2019. The company’s market value grew by almost 8900% in just ten years, easily earning Ulta a Wall Street darling status. Unfortunately, Wall Street likes fast-growers only as long as they keep growing. Ulta Beauty reduced…

Read More »

Is Oil States Stock Finally Ready for a Rebound?

The last time we wrote about this relatively unknown oil services provider was over two years ago, in August 2017. Oil States stock was trading near $21.50 a share following a decline from almost $42. Yet, with the help of the Elliott Wave principle, we concluded the price can get cut in half again “to…

Read More »

Can this Elliott Wave Setup Cut Seek Stock in Half?

Seek Limited operates online platforms where jobseekers can find employment opportunities. The company is based in Australia, but also conducts business in China, India, New Zealand and Brazil, among others. Seek stock is traded on the Australian Stock Exchange under the symbol SEK. Seek stock lost over 78% during the 2007-2009 global crash, but has…

Read More »

Realty Income Pattern Sets the Stage for a 40% Drop

Realty Income Corp. is a REIT dedicated to delivering dependable monthly dividends to investors. The company owns over 5900 real estate properties and has a market value of roughly $23.5 billion. Adjusted for splits, it went public in 1994 at $8 and reached an all-time high of $76.73 two days ago. Not counting the dividends,…

Read More »

Walgreens Stock Can Add Roughly 30%

On December 4th, 2018, Walgreens stock was trading north of $86.30 a share. Yesterday, it closed at $51.43 for a total loss of 40.4% in nine months. Nine months in which the general stock market has been rallying. Walgreens Boots Alliance is a pharmacy retailer with over 18 500 stores in 11 countries. Walgreens is…

Read More »

Rapid7 Stock is Prone to Decline… Maybe Rapidly

Rapid7 stock appreciated by over 630% between February 2016 and July 2019. The price climbed from $9.05 to $66.01 in less than four years on the back of strong secular growth in the cyber security industry. However, Rapid7 hasn’t been able to capitalize on the vast opportunities in the space. The company posted annual losses…

Read More »

Can Facebook ‘s Antitrust Concerns Fulfill this Setup?

This article was originally published on June 13th, 2019.  It was updated on August 7th, 2019. Facebook ‘s privacy policies are under the microscope once again. Personal e-mails uncovered during an FTC investigation reveal Mark Zuckerberg knew of the company’s problematic privacy practices. Escalating antitrust concerns are not helping the bulls’ cause, either. Facebook stock still hasn’t been able to fully…

Read More »

More analyses