Daimler could follow the generally weak market
Daimler AG (DAI) is a leading international car producer that builds passenger cars, commercial vehicles and offers financial services. The company sells its vehicles and services in nearly all countries around the globe.
The stock made an uptrend over the last 5 years, but is currently making a strong correction which is a downtrend on the daily chart. This results in an opportunity for a short trade.
DAI weekly chart – opportunity for a short
Source: ATT Trading. Create your own charts with SaxoTrader click here to learn more
Management and risk description
We can see our downtrend very clear on the daily chart and mid-term traders will now get the chance to find an entry. This downtrend already made a correction of around 75% which results in interesting targets around €63 and €57.
DAI daily chart
Source: ATT Trading
We can also see an resistance zone which consists of the SMA 200 (red line) and the EMA 100 (blue line). Before this zone is not significantly broken the downtrend is intact. Should the stock, however, significantly break through the price level of around €76.70, our short-idea would be over. The decreasing volume in the correction (see Fig.2, black arrow in volume) is another indication that additionally favours a short position.
Target: €63, €57
Time horizon: medium-term
— Edited by Clare MacCarthy
Non-independent investment research disclaimer applies. Read more