FHZN - The power of elliot waves | Volume 2
The zurich airport is tough, but in the coming months this toughness will be tested once again!
FHZN
Our last analysis on this share was published on January 12, in which we warned about a potential sell-off.
In this analysis we highlighted the importance of the wedge formation to our subscribers. In the last days the stock fell by more than -20% and we have now left this formation.
Today zurich airport published its earnings and based on them we can evaluate the progress of the company.
The airport was able to slightly reduce its net loss in the past year but disappointed investors with lower revenues than expected.
Revenues were just under 680 million, which is about half of what they were before the Corona crisis. The management announced that a full recovery to the pre-crisis level of 2019 is not expected until the end of 2025. Investors will have to be patient with the company and as most assumed there won't be a dividend payout again this year. This however gives the management the opportunity to direct the money to where it's most needed.
Overall, the airport is recovering in small steps from the shock of the Corona crisis.
The upcoming years will bring further difficulties, but the management will concentrate on navigating the company back to profitability.
Technical explanation of the elliot wave structure:
As mentioned above, the share price has fallen by almost -20% since we last warned of a sell-off. We as Mendenmein Capital see this as another confirmation of our calculations.
Nevertheless, we assume that the share has now expanded a first downward impulse in the white wave (1) and in the coming weeks a slight recovery must be expected in the white wave (2). This wave will lay the foundation for further sell-offs and the target for the next year is located at just 95 swiss francs. The white wave (3) should be able to reach this target without any problems.
After a short recovery in the white wave (4), a final wave (5) will continue to correct towards our final target of 80 swiss francs. We assume that this downward impulse will occupy us in the coming months and years.
In the long term however, we are extremely bullish and the formations of the last years point towards a very large wave I / wave II super cycle. This means that we have a multi-year bull market ahead of us after the completion of wave II, our subscribers are familiar with this term by now. The long-term price target for this stock is 450.- and we at Mendenmein Capital are extremely confident in our optimistic views.
On our website investors can learn more about the zurich airport share and other stocks! www.mendenmein-capital.com
Disclaimer:
According to legal regulations, Mornau-Research is not a certified or legally recognized financial advisor and any transactions based on published content are at your own risk.
Mornau-Research cannot be held liable for any losses whatsoever according to the legal regulations in it's country of residence.
===============================================================================================================
If you have questions related to a specific stock or the Elliot Wave theory, feel free to contact us.
FHZN
Our last analysis on this share was published on January 12, in which we warned about a potential sell-off.
In this analysis we highlighted the importance of the wedge formation to our subscribers. In the last days the stock fell by more than -20% and we have now left this formation.
Today zurich airport published its earnings and based on them we can evaluate the progress of the company.
The airport was able to slightly reduce its net loss in the past year but disappointed investors with lower revenues than expected.
Revenues were just under 680 million, which is about half of what they were before the Corona crisis. The management announced that a full recovery to the pre-crisis level of 2019 is not expected until the end of 2025. Investors will have to be patient with the company and as most assumed there won't be a dividend payout again this year. This however gives the management the opportunity to direct the money to where it's most needed.
Overall, the airport is recovering in small steps from the shock of the Corona crisis.
The upcoming years will bring further difficulties, but the management will concentrate on navigating the company back to profitability.
Technical explanation of the elliot wave structure:
As mentioned above, the share price has fallen by almost -20% since we last warned of a sell-off. We as Mendenmein Capital see this as another confirmation of our calculations.
Nevertheless, we assume that the share has now expanded a first downward impulse in the white wave (1) and in the coming weeks a slight recovery must be expected in the white wave (2). This wave will lay the foundation for further sell-offs and the target for the next year is located at just 95 swiss francs. The white wave (3) should be able to reach this target without any problems.
After a short recovery in the white wave (4), a final wave (5) will continue to correct towards our final target of 80 swiss francs. We assume that this downward impulse will occupy us in the coming months and years.
In the long term however, we are extremely bullish and the formations of the last years point towards a very large wave I / wave II super cycle. This means that we have a multi-year bull market ahead of us after the completion of wave II, our subscribers are familiar with this term by now. The long-term price target for this stock is 450.- and we at Mendenmein Capital are extremely confident in our optimistic views.
On our website investors can learn more about the zurich airport share and other stocks! www.mendenmein-capital.com
Disclaimer:
According to legal regulations, Mornau-Research is not a certified or legally recognized financial advisor and any transactions based on published content are at your own risk.
Mornau-Research cannot be held liable for any losses whatsoever according to the legal regulations in it's country of residence.
===============================================================================================================
If you have questions related to a specific stock or the Elliot Wave theory, feel free to contact us.
If you should have any questions regarding our analysis or elliot wave counts feel free to contact us.
