Bear Pennant focusing on 76 EUR. Level of 76 EUR was tested several times. Formation of a spring at 80.75 EUR.
Volume is decreasing indicating a supply shortage in addition with increasing prices representing a disharmony of effort (volume) and result (price).
We observe a support/resistance flip on ema_8d lately.
Same behaviour might happen on ema_20d and...
The current region is a high supply area
Indicated by the 2 long tails created. Also the low 80 for the current trade is a golden cross between wma 50 and 100, so a short term technical buy.
But nevertheless keep a SL at 80 and hold till 94. The Risk to Reward is quite attractive with a downside at 4% and upside is at 16% making 1:3 R2R ratio quite favorable to us .
Fundamentals: Varta plummeted for past few weeks due to news of possible competition from China. Trend of TWS for 2020 is untouched though.
Technical analysis: resistance at EMA 240 was confirmed, breaking pressure trending line. next resistance at 90
VARTA AG engages in the research, development, production, sale, and marketing of micro batteries and energy storage solutions. It operates through the following two segments: Microbatteries and Power & Energy. The company was founded by Adolf Müller in 1887 and is headquartered in Ellwangen, Germany.
VAR1
