Stocks like Varta, which satisfy the needs of the average consumer for batteries and rechargeable batteries, can actually always look forward to constant sales. Chart technology currently says that major price jumps in the share are not to be expected in the near future. Nevertheless, you can earn money with this share with an inliner warrant, the term of which runs until March 2021.
The share of the company, which was founded in 1887 but has only been listed again since 2017, only has to move sideways, above 70 euros and below 150 euros. With the inliner warrant proposed here, 10 euros per note will be paid out at the end of the term if the Varta share does not touch either of the two knock-out barriers. The paper is currently trading at just under 113.00 euros. If no knock-out event occurs, i.e. if the price of the underlying is at no time during the term at or below the lower knock-out barrier or at or above the upper knock-out barrier, the exercise right becomes on on the final valuation date, March 16, 2021. Owners of the warrant receive 10 euros on the payday six days later. If the stock does not stay between the barriers, the warrant expires worthless.
In the following graphic from 2017, the Varta is located in a consolidation triangle, which was created from an upward and a downward trend line. The barriers are outside these lines. This means that the horizontal red barriers are at a clear distance from the current price in terms of chart technology.
Outside the consolidation triangle, there is a light red resistance zone between 126 and 140 euros, which should cap further price increases. Below the course of the course there is also a light green inserted support zone between 84 and 98 euros. From this point of view, too, it is therefore not to be expected that the share will approach the upper or lower barrier in the course of the next 4 months.
VARTA AG in the daily chart: 1 candle = 1 day (log. Candle chart display)
An unexpected movement to the north or south should stop in one of these areas at the latest. The German battery manufacturer is so to speak stuck between support and resistance, which makes the inliner warrant presented here appear interesting as a short-term investment instrument. In order to avoid the risk of total loss, however, the VARTA position should be closed at a rate below EUR 85.00 or above EUR 135.00. As long as that is not the case, however, you can relax and wait until the last valuation day, which you can see in the course of the price as a vertical, blue dashed line.
Inliner warrant to VARTA AG for speculation on a sideways movement of the share
|Underlying||WKN||Ask rate/ EUR||Range||running time||Max payout |
|VARTA Inliner OS||HR27SG||6.71||70.00-150.00 euros||March 17, 2020||10.00 euros |
Source: HypoVereinsbank onemarkets; Status: December 15, 2020; 3:15 p.m.
You can find more products on the Varta share at: www.onemarkets.de
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Please note the important information and the disclaimer.
This information does not constitute investment advice, but advertising. The public offer is made exclusively on the basis of a securities prospectus approved by the Federal Financial Supervisory Authority (“BaFin”). Approval of the prospectus should not be understood as a recommendation to purchase these UniCredit Bank AG securities. Only the prospectus including any supplements is relevant and the Final Terms. It is recommended that you read these documents carefully before making any investment decision in order to fully understand the potential risks and rewards of investing. You are about to acquire a product that is not easy and can be difficult to understand.
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The article VARTA AG – chance of profit with sideways prices until March 2021 first appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).