Bayer shares: focus on the 50’s EMA – UBS column

Review: Bayer shares are in a long-term overall downward trend. This runs in the weekly chart in a trend channel that has lasted for years. Since the low of EUR 39.91 on October 30th, the shares have been in an upward correction in the overall downward trend. The 50 EMA in the daily chart was broken up in the previous days, which is a signal for further short-term strength. Please note the gap on the upper side at EUR 52.85 from September 30th in the daily chart. This gap could serve as a starting target for the current correction. As a result of the current upward correction, however, a renewed price decline and a resumption of the long-term downtrend would be expected.

Outlook: The downward trend in Bayer shares is clearly intact; the current upward movement is to be classified as a normal countermovement within this downward trend.


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