SAP has suffered 3 downgrades recently and unfortunately this can only lead to price declines. From a charts perspective it looks like the B wave has just been completed of the correction phase, giving a target of $87 for the final 3 wave.
Bearish in short run -to bonce back to around 113 - 114.
Period from: Feb 5 - Sept 20th
Why: When looking at the six month chart it waffles before trending upward or downward. The waffles have become larger. By placing indicators at the end of large buys and sells, this gives you a range of how far the next break out is going to go.
After the Range Breakout in Juli SAP hit a new high around 92,70.
Breakout was confirmed in November.
Gap is still open - bullish.
Buying the next breakout above 92,70 on a daily basis could accelerate the rally once again and carry SAP to new highs around 103.
SAP has a market capitalisation of about 103 Mio. Euro and is the number one DAX...
Check out SAP AG on the NYSE.
Currently trading with a safety margin of 22% below its value with a nice strong buy signal on the weekly chart on SAP AG in the German Stock Exchange. You can trade on either the Frankfurt Stock Exchange or the New York Stop Exchange
Buy at Market
Put a stop loss at $70.00
Profit target at $84.00
Our risk reward is 3 to 1.