BMW entered a bullish trend back in 13 May 2016, when it paid the dividend of 2016. Yesterday was at minimums of 2013 if we do not take into account Brexit effect on 2016. Today is the day before the ex-dividend date of 2019 and it offers a dividend yield of 5.12%. Nonetheless, it's worth reminding that BMW's 2018 Earnings where -16.9% YoY so in case you happen to buy shares today, do not hold them for long. A positive point for the auto sector is that Trump will delay tariffs on autos 6 months from now. Therefore, we might expierence some volatility with BMW stock and it could have a trend reversal right from today up to levels of 74-75€. So the final conclusion would be: Buy today, seize the dividend this month and sell in 5-6 months time depending on market news.
Trade active:
BMW faces a -5% fall due to people selling their stock on ex-dividend date and predicting a further fall on the stock in the long term due to US car tariffs. BMW at minimums of 2012: 65€.
Comment:
BMW falls 30% from 2018 maximums and it is following a very predicted bearish channel. Even though, due to its overselling the stock could expierence an increase to 75€ and then may be it could breakout 77€ upper resistance. Why buying yesterday and not today? Because of the dividend. But yes, I just realised that from 65 to 75€ there are 10€/share and the dividend is 3.5€/share. Mistake.
Comment:
BMW touches lower bearish channel boundary. If Trump's tariffs calm down, we could expect the share to go up to 73.70€ in mid August 2019.
Trade active:
BMW seems to have reached a psychological resistance around 62€. It still has not broken through the lower bound of the bearish channel.