Traderherz-Analytics

Trading Idea - #VARTA (Head+Shoulders formation)

Short
XETR:VAR1   VARTA AG O.N
SELL

ENTRY: 132. 40 EUR
TARGET: 83.55 EUR (37% profit)
STOP: 154.45 EUR


1.) Technically a head and shoulders formation could form.

2.) 135.00 EUR is a significant resistance level . Rejection expected!

3.) As expected, the battery manufacturer's start to the year was weak.

4.) VARTA and Allgäu Batterie enter into partnership for lithium-ion battery packs.

5.) VARTA develops mobile energy packages for everything from headphones to car

Comments

Varta is way to healthy and last weeks signed a contract with Porsche to deliver car batteries same story in evaluating a contract with Daimler.
Next point why the draw down happened that hard, Varte a has one of the most short sellers pressing down the price by selling empty stocks to cover his shorts.
If the buy preasure kills all that shorts we will see a squeeze likely to 180 again.

Sorry but here is not only the chart telling the story more in fundamental parts to see here ;)
Furthermore this is far away from a clean h&S formation.
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