Positive on Insider Trading and near support level

Positive insiders indicate that the stock is fundamentally cheap. At the same time, the stock is near support, where many investors and traders feel the stock is cheap.

Theory: The Insiders in a company know a lot about the company, the market the company operates in and the future outlook. Maybe they even have better knowledge than analysts and investors that track the stock. When Insiders bet their own savings that the price will rise, and buy stocks in the company, this means they believe the stock to be fundamentally cheap. When the stock price is near a support level, this either means it has fallen back to a support level, or that it has broken up through a resistance level and given a buy signal. In both cases, the psychology of the market indicates that the price should rise further. When the stock is both fundamentally cheap (postive on Insider Trading) and technically positive, one has good chances of making a good investment.

Insider Trading score is only calculated for the medium long term, and only for the Norwegian and Swedish markets, so this trading opportunity only exists for the medium long term for Norway and Sweden.

Score: The most important elements in calculating the score for this trading opportunity are Insider Trading score, the strength of the support level and the distance to the support level. In addition, the change in Insider Trading score for the last week, trend, formation and volume development are taken into account.

Buying price: Is set one "normal movement" above the support level. A "normal movement" is defined as the average price movement during a period equal to about one percent of the length of the chart.

Price target: Is set to the estimated theoretical maximum price, given that the price develops as a slightly coloured random walk for 20 % of the length of the chart. Normally, this will be 15-30 percent of the height of the chart.

Stop loss: Is set to approximately one "normal movement" below the support level.

Time horizon: Is set from 14 to 20 % of the length of the chart.