Covestro shares before top formation, or will the next price rally follow? – Chart analysis

The upward trend in the chart is clearly intact for the Covestro share, but the last few days may have sowed doubts among investors about the further price potential of the chemical stock. In mid-December, the DAX value reached a new annual high of 51.50 euros. But around this top there is a potential upper reversal zone, which ranges from 50.86 / 50.94 euros to 51.14 euros – the daily high of December 29, 2020 – up to 51.50 euros.

Since December 9, 2020, Covestro’s share price has been slowed down again and again in this zone. However, the DAX share has so far not suffered any major losses from this potential upper reversal formation. On the contrary: at EUR 48.44 / 48.92 and thus around the upper end of a recently opened upward gap at EUR 47.54 / 48.78, a new support zone has formed. In addition to the gap, this was based on the striking local high of September 18, 2020 at EUR 48.82. All in all, therefore, stronger trading support, which has so far prevented greater profit-taking from Covestro shares.


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