“Has fallen low, but there is a chance of bottoming out” – this is how the current situation for Bayer shares can be described in a chart. After the crash from 73.53 euros to 43.87 euros, which was reached on October 2, Bayer’s share price was able to neutralize the interim slide below the corona crash low from March at 44.855 euros. In the last few days, the share price of the DAX-listed group from Leverkusen moved in a range between EUR 44.965 and EUR 47.17. So little movement, but at least the potential technical support zone at 43.870 / 44.855 euros was no longer in real danger.
However, the current situation with Bayer’s shares does not yet encourage cheers. Clear trend reversal signals have so far been missing after the previous crash. Without procyclical buy signals, however, the technical support area remains potentially at risk, and a continuation of the bear market hangs like a sword of Damocles over Bayer’s share price. A look at the long-term chart shows potential support above EUR 42.57, but whether this rather subordinate brand, which is also around ten years old, can donate support for Bayer shares in the event of a new sell signal remains questionable.
It would therefore be safer for the DAX to rise as quickly as possible over obstacles at EUR 47.07 / EUR 47.17 and EUR 48.52 – the lower end of a gap that was torn open on October 1 and its upper end at 52.85 Euro can be found. A strong technical resistance zone extends between EUR 51.20 and the upper end of the gap. A jump in Bayer stock over this and confirmatory over further obstacles between EUR 54.65 and a zone around EUR 55.90 would then be a clearer bullish sign.