Daimler AG (DAI) is a leading international car producer which builds passenger cars, commercial vehicles and offers financial services. The company offers its vehicles and services in nearly all countries around the globe.
The stock made an uptrend over the last 5 year, but made currently a strong correction which is a downtrend on the daily chart. This results in an opportunity for a short trade.
Management and risk description
We can see our downtrend very clear on the daily chart and mid-term traders will now get the chance to find an entry. This downtrend already made a correction of around 75% which results in interesting targets around 63 € and 57 €.
We can also see an resistance zone which consists of the SMA 200 (red line) and the EMA 100 (blue line). Before this zone is not significantly broken the downtrend is intact. Should the stock, however, significantly break through the price level of around € 76.70, our Short-idea would be over. The decreasing volume in the correction (see Fig.2, black arrow in volume) is another indication that additionally favor a short position.
Entry: 71,00 €
Stop: 74,00 €
Target: 63,00 €, 57,00 €
Time horizon: medium-term
Disclosure according to § 34b WpHG due to potential conflicts of interest:
The author is not invested in the relevant securities or underlying securities at the time of publication of this analysis