Review: The shares of SAP have been in an upward trend for years. In the short-term picture in the daily chart, on the other hand, the stocks have moved sideways in recent months and made two striking highs at EUR 143.20 and EUR 143.32, which turned out to be a double top. The shares have been slowly falling again since September and broke through the important 50’s EMA at the end of September. This generated a short-term weakness signal, which was subsequently confirmed as prices continued to fall. The day before, the shares of SAP have now reached the 200 EMA at EUR 124.92 and went out of trading at the close of trading. Will the 200 EMA hold up or will the bears break through here too?
Outlook: The stocks from SAP are under pressure just like the overall market. If the bears break below the 200 EMA, this would result in space up to the 200 EMA in the weekly chart at currently EUR 104.40.
The short scenarios: The shares of SAP cannot hold above the 200 EMA and break down. This would directly create a long-term short signal and increased downward momentum would be expected. The first price target would be seen directly on the 50 EMA in the weekly chart, which is currently at EUR 122.75. If it goes deeper, a price slide should follow up to the 200 EMA in the weekly chart. In this area, SAP’s papers have often turned upwards again in recent years, so that a renewed ramp-up must be expected at the 200 EMA in the weekly chart.
The long scenarios: The shares of SAP can defend the 200 EMA in the daily chart and turn up again. The first starting point would then again be the 50 EMA in the daily chart, on which the shares have repeatedly bounced down in the previous days. Only with a sustained breakthrough above the 50 EMA would a longer price rise and a run-up to the resistance at EUR 143.20 be expected.
Disclaimer: The text is a column of the UBS. 4investors is not responsible for the content of the column 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!
At a glance – chart and news: SAP