In the duel “Grenke vs Viceroy”, the company from Baden-Baden was able to regain trust recently. The analysis by Fraser Perring’s Viceroy Research identified the attack on Grenke’s cash position as a vulnerability – we reported the link can be found below. Grenke has now taken apart this argument with relish, with the help of Extracts from the Bundesbank on bank balances. This recently brought the share price a two-day price jump and a thick buy signal at the important technical chart hurdle at 39.20 / 40.50 euros – this is where the Corona crash low lies, among other things. The recovery movement only stopped at 46 euros on Tuesday, before Grenke’s share price fell again noticeably.
To believe that the duel “Grenke vs Viceroy” is decided for the MDAX group would be naive anyway. So have the southern Germans Allegations of nepotism in the franchise business and the relationship with the “Austria Connection” so far neither adequately answered nor eliminated from the world. The fact that some of them took the quick profits yesterday does not necessarily show that the stock market is now consistently optimistic for Grenke again.
Nevertheless, yesterday’s price drop to EUR 38.28 at a closing price of EUR 40.54 also had a positive side for the share: despite a brief rebound below EUR 39.20 / 40.50, this signal mark was finally maintained. This also applies to the current situation on Thursday morning with indications for the Grenke share at EUR 40.70 / EUR 40.84. If the share price can defend the area around the corona crash low as technical chart support, there are chances of a renewed recovery movement.
In terms of the chart, the area at and around 39.20 / 40.50 euros now acts as a strong support zone for the Grenke share. A slide below this would be a serious setback and could again lead to significant sales waves. On the other hand, in the event of an upward movement, technical resistance is to be expected at EUR 46.00 / EUR 46.20. Further hurdles are then spread across the wide zone between 48 euros and 52 euros.