Should You Buy Telefonaktiebolaget LM Ericsson (ERIC) Today? Analysis, Price Targets, and 2026 Outlook.
Analysis Updated At
2026/01/28
ERIC is a BUY right now for a beginner long-term investor with $50k–$100k. Despite today’s pullback (-2.07% regular session) and an overbought short-term RSI, the trend is still technically bullish (stacked moving averages + expanding positive MACD), options positioning is strongly call-skewed (bullish sentiment), and the latest quarter (2025/Q4) shows clear acceleration in revenue and profitability. Analyst stance remains Neutral, but price targets have been nudging upward—supporting a steady, long-term accumulation view rather than a high-conviction “avoid” signal.
Technical Analysis
Trend/price action: The broader setup is bullish even though the stock dipped today (post-market ~10.83). Moving averages are positively stacked (SMA_5 > SMA_20 > SMA_200), which typically signals an established uptrend.
Momentum: MACD histogram is positive (0.177) and expanding, reinforcing upside momentum.
Overbought/entry timing: RSI_6 is 78.23, which is consistent with a short-term overbought condition—meaning near-term chop/pullback risk is elevated, but it does not negate the prevailing uptrend for a long-term buyer.
Key levels: Pivot ~10.139 is the key nearby support zone; resistance is near R1 ~10.907 and R2 ~11.381. At ~10.83, ERIC is trading just below the first resistance band.
Pattern-based short-term odds (given): Similar-pattern stats imply ~50% chance of ~-1.12% next day, but positive bias over 1 week (+6.19%) and 1 month (+9.63%), aligning better with a long-term approach.
**Intellectia Proprietary Trading Signals**
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
- [SwingMax](module://swingmax): No signal on given stock today.