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Bayer: Shares dive – UBS column

Review: Bayer’s shares have been in an uptrend channel since the Coronacrash low of March 16 at EUR 44.85. The shares followed this uptrend channel until June 23 at EUR 73.63. As a result, the paper dropped sharply again and reached the lower limit of the rising trend channel on July 7th. The daily low was reached at EUR 62.29. During the course of the day, not only was the lower trend channel limit broken down at EUR 64.10, but also the 200 EMA and the 50 EMA. Prices below the 200 EMA indicate long-term falling prices. So far, neither the rising trend channel nor the two EMAs have been recaptured.

Outlook: The stocks are in a clear downward trend, which was reinforced by the breaking of the lower limit of the rising trend channel. As long as the 50 and 200 EMA can no longer be recaptured, prices will continue to fall. The bear’s first call would be the support at EUR 56.00, followed by the lower support at EUR 51.00. Below EUR 51.00, the bears should head for the Coronacrash low at EUR 44.85.

The long scenarios: The stocks can free themselves from the downward momentum and make another increase. It is important for the bulls to conquer the 200 and 50 EMA. If this succeeds, the bulls should continue to run up to the still open price gap at EUR 66.61, then a further rise to the lower limit of the rising trend channel should then take place. The situation for the bulls would only brighten up as soon as the rising trend channel could be recaptured. Then the bulls’ next stop would be at the EUR 69.50 resistance. Above that, the high of June 23 should start at EUR 73.63.

Disclaimer: The text is a column of the UBS. The content of the column is not the responsibility of 4investors and therefore does not necessarily have to agree with the opinion of the 4investors editorial team. Any liability and claims are therefore expressly excluded by 4investors!

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