The news from February 16 that Ericcson may have paid bribes to Isis in Iraq sent the stock plunging. Shares dropped 40% from the $12.50 level before finally bottoming out around the $7.50 area.
The drop took shares to levels last seen at the beginning of the Covid Crisis. The drop also took ERIC to extremely oversold readings from a technical perspective. 14-day RSI was slammed to under 20. MACD reached the most bearish levels in the past two years. Momentum nearly fell off the chart. Shares were at a massive discount to the 20-day moving average. The technicals, however, have improved greatly over the past few weeks.
