Since the bullish false signal on Monday, there hasn’t been much going on with Bayer shares. The share price is crumbling and there is – at least for now – no more talk of a potential breakout from the recent bear market. Instead, the first small procyclical sell signals threaten to set new negative impulses for Bayer’s share price. After the erroneous breakout above 48.52 euros, the development has been declining since Monday’s top at 49.18 euros. Yesterday, Bayer’s share price fell to 46.26 euros and closed XETRA trading at 46.395 euros. Current indications on Friday morning are at a similar level – no major change.
The breakout over the hurdles between 46.87 / 47.17 euros and 48.52 euros has not remained stable. In the case of a rebreak below the lower of the two levels, however, you have to put a small question mark in view of the proximity to the current price. One thing is certain: in terms of the chart, the zone with the hurdles between 46.87 / 47.17 euros and now 48.52 / 49.18 euros has become an even higher obstacle than it was before. As in August and September, Bayer shares could not sustainably overcome the EMA 50.
In terms of chart technology, it would therefore not be surprising if further pressure were to arise on the share price. The subjunctive is still necessary here. If the losses occur, the signal area around 44.855 / 45.165 euros for Bayer’s share price would be classified as the next support zone. Among other things, this is where the corona crash low from March lies. Further sell signals could then push Bayer’s share price towards 43.18 / 43.87 euros and 39.91 euros – the multi-year low. If the bulls want to prevent that, Bayer shares must quickly overcome 48.52 / 49.18 euros. How that should work is currently open.