Working out what happened:
Varta was recently stuck in a triangular formation that erupted on October 22nd, 2020.
The price then went up to a high of € 119.70.
From there there was a retest, which now functions as a support zone (around € 116.10).
The hourly chart now shows that the € 117.90 is also a support zone .
As you can now see in the trend channel, we...
Bear Pennant focusing on 76 EUR. Level of 76 EUR was tested several times. Formation of a spring at 80.75 EUR.
Volume is decreasing indicating a supply shortage in addition with increasing prices representing a disharmony of effort (volume) and result (price).
We observe a support/resistance flip on ema_8d lately.
Same behaviour might happen on ema_20d and...
The current region is a high supply area
Indicated by the 2 long tails created. Also the low 80 for the current trade is a golden cross between wma 50 and 100, so a short term technical buy.
But nevertheless keep a SL at 80 and hold till 94. The Risk to Reward is quite attractive with a downside at 4% and upside is at 16% making 1:3 R2R ratio quite favorable to us .
Fundamentals: Varta plummeted for past few weeks due to news of possible competition from China. Trend of TWS for 2020 is untouched though.
Technical analysis: resistance at EMA 240 was confirmed, breaking pressure trending line. next resistance at 90
