Welcome to this analysis about the SAP stock and the 2-day timeframe perspectives. Within the corona pandemic, many businesses, as well as private persons, moved into the home office and a boom in digitization emerged which is still ongoing. In this case, software companies like SAP or companies that have something to do with digitization could make huge increased profits which converted into rising prices in the stock market. These are the fundamentals that look quite positive, now when looking on the technical side of things I also detected a major decisive paramount formation SAP is forming here in the structure which is actually a bull flag formation as it is marked in my chart. The bull flag formation resulted out of an initial bullish impulse to the upside from where SAP moved on to form the bull flag which simultaneously is the wave B of the whole major wave count. Within this bull flag SAP also has a wave count with the waves A to E already completed and now as SAP approaches the lower boundary in which important supports lying together with the 500-EMA this is a important zone from where the main bounce can emerge. If this bounce is solid enough and SAP manages to increase bullishness from there on SAP will have a good ability to complete this whole bull flag formation with a final breakout above the upper boundary as it is marked in my chart, this will activate the upper target zone and once this zone has been reached the situation needs to be elevated again and SAP needs to show if it forms a continuation formation in this structure or firstly reverses initially, it will be an interesting development ahead.
In this manner, thank you for watching the analysis, all the best! "Good fortune is when opportunity meets preparation."
Information provided is only educational and should not be used to take action in the markets.