DSV – Potential reversal after break down from uptrend

DSV was in a rising trend but formed a small head-and-shoulders formation (HS), which led to a negative breakout. In the following three months, the price development can be interpreted either as a rectangular consolidation (REC) or a short-term downtrend. The price then dropped sharply to a pointed V-shaped bottom on April 9, followed by a strong rebound. Volume increases and falls in a V-shape – the development resembles a final rally, although such a rally typically follows a longer calm uptrend or downtrend.

The price has now established itself higher, with rounded tops and pointed bottoms. Volume balance has been negative since the HS formation, with increased volume at the bottom. Price momentum indicators are, however, positive.

The price is above a green cloud in the Ichimoku.

The stock is considered technically slightly positive for the next one to six months.

From a fundamental perspective, analysts are generally very positive about DSV. The company is regarded as highly competitive compared to industry peers. DSV is one of the largest global logistics operators, but rising import duties are expected to limit the volume of goods to be transported.

The company is highly scalable, as it owns few of the trucks, ships, and planes it uses itself.

Recently, there have been critical articles in the Danish newspaper Børsen, highlighting a tough management culture at DSV.

Disclaimer: I hold a position in DSV.
Note: Always do your own research and evaluation before buying or selling stocks.