Siemens share: 50’s EMA offers solid support – UBS column

Review: Siemens shares have risen sharply since the corona crash low on March 19 at EUR 58.77 and again rose to the longstanding resistance area of ​​EUR 120.00. The high of this upward rally was reached at the end of August at EUR 120.66. As a result, stocks went down again, with the 200 EMA breaking through at the end of October. The correction low was marked at EUR 98.50. Then the bulls launched another counterattack and drove the shares up to EUR 119.30 in a few trading days. As a result, the shares plummeted again, but were able to catch up in the area of ​​the 50 EMA, which is currently quoted at EUR 111.14 and offers solid support. It is precisely at this 50’s EMA that Siemens shares have been trending sideways since mid-November.

Outlook: Siemens shares are trading below a massive year-long resistance area at EJR 120.00 and were previously pushed up by the strength of the overall market. However, if the DAX slips again, Siemens’ shares are likely to plummet again. In addition to the corona pandemic, the strong euro and the likely hard Brexit, there are enough reasons for falling stock markets.

The short scenarios: Siemens shares slide back below the 50 EMA, sending a bearish signal. If it goes deeper, the 200 EMA could be started. Only below the 200 EMA would the situation for Siemens shares deteriorate again for a long time and a further price slide to the low of EUR 98.50 would be imminent.

The long scenarios: Siemens shares can hold up above the 50 EMA in the daily chart and form a solid bottom here, which can then be used as a springboard for a renewed rise. The first target for the bulls would then be the still open gap on the upside at EUR 116.88.


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