Buying points:
-trend line from July,15
-strong support at 51.14€
-MACD: MA lines extremely under average
-RSI: oversold
Selling points:
-all SMAs above the price
-MACD shows negative momentum
Fundamentals
-selling pressure bc of bad earnings of the gaming industry (take-two)
-seasonal summer impact -> people are more outside, fewer sales
-guidance of next earnings: meh
Conclusion
Technically the stock has a great potential to bounce back to a certain level which I think is 59-60€. So, with a tight stop loss, we are looking for a 17% return.
My strategy, in this case, is to sell the stock when it hits SMAs like 50 or 100 (main goal 100).
You could argue that the share has the chance to get to the upper downtrend line but the fundamentals do not support this theory, not in the short-mid term.
Short opportunities could arrive after we go under the trend and support line (full daily closed candle). This would become approximately 20% down to the next support line of 40€.
As all ways, I try my best to calculate the best risk/reward ratio. If you like my analysis you can follow for more quality content.
-trend line from July,15
-strong support at 51.14€
-MACD: MA lines extremely under average
-RSI: oversold
Selling points:
-all SMAs above the price
-MACD shows negative momentum
Fundamentals
-selling pressure bc of bad earnings of the gaming industry (take-two)
-seasonal summer impact -> people are more outside, fewer sales
-guidance of next earnings: meh
Conclusion
Technically the stock has a great potential to bounce back to a certain level which I think is 59-60€. So, with a tight stop loss, we are looking for a 17% return.
My strategy, in this case, is to sell the stock when it hits SMAs like 50 or 100 (main goal 100).
You could argue that the share has the chance to get to the upper downtrend line but the fundamentals do not support this theory, not in the short-mid term.
Short opportunities could arrive after we go under the trend and support line (full daily closed candle). This would become approximately 20% down to the next support line of 40€.
As all ways, I try my best to calculate the best risk/reward ratio. If you like my analysis you can follow for more quality content.