RWE AG is an energy utility group from Germany and is among the leading electricity and gas suppliers. The energy production mainly takes place in conventional coal and gas-fired power stations. For the renewable energy sector, the subsidiary Innogy SE was founded in 2016. The corporation has its headquarters in Essen. The following analysis will examine the company’s stock from a technical perspective.
Since the high in November 2017, the RWE stock has been unable to record any further price increases; instead, the upward trend that had existed until thus far was broken, and simultaneously, a new downward trend was formed. The price is currently recording below the SMA 200 and is located in the correction of the last downward movement.
For the sake of the higher potential, a further correction would be advantageous. Following this, the upward trend that can currently be seen in the subordinate trend size should clearly turn around (blue arrow). An entry can then take place at the point 2 or in the following correction, with a stop on the point 3 that will have formed by then.
The targets to be aimed for are located in the price areas of €15 and €11.30 (green zones). If the value clearly and sustainably rises above €18.50 (red line), the short scenario should be abandoned.
Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the overall market.
Disclosure of possible conflicts of interest: at the time of publishing this analysis, the author is not invested in the securities or underlyings discussed.
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