German company E. ON has started the current year in the weak positive progressions. Last month, however, it has been some pressure on the downside, when we note the lower highs in line with the upper declining trend line. A clear triangelformation has now been formed, and the question is if the stock is gearing up for the outbreak of the north, or a renewed trip to the south…
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E. ON has, since the turn of the year has risen a little more than 7 per cent. The year high was achieved in the beginning of march, but the 200-day moving average was when the shares turn south.
This long-term technical average that MA 200, is often considered to be a significant crossroads, and we have since the month of april has been rebalanced around this average.
We note all lower highs since we achieved the high for the year, while we had a brief outburst from the triangelformation formed.
The share is trading above the MA 200 since the previous week, and despite the fact that we had less of a decline after, we continue to find ourselves in the triangelformation that have arisen.
The volume suggests that there may be köpstyrka behind a curtain, and perhaps the brief outbreak out of the declining trendline, we got to experience last week was a preview on the continued rise?
Triangelformationen beginning to reach its end, which means that we are facing a potential crossroads in the future.
Outbreaks to the north means that the increased probability of return visit of the high for the year at 7.60 euros, because we are around this price level find the outer part of the a significant volume range last year.
The next big volume range of this price level, we do not see until 8.20 euros, which means that this is considered to be a significant technical key level.
Nevertheless means of an outbreak to the south from the triangelformationen, that increases the risk that we can possibly make return visits around the year low at 6.60 euros. At this price level is also found heavy volume last year, which means that this price level is considered to be a technical key level.
P/E est. 2017
Direct avk. est. 2017
This means that we keep an extra eye on both the above and the underlying trend line that formed a triangelformation, at the same time that we keep track of our averages as both MA 50, 100 and 200.
We also keep track of how ‘ vapour looks, the higher köpvolym during uppgångsdagar, versus nedgångsdagar can potentially involve underlying strength as a weakness.
The shares are traded on Xetra, under the symbol EOAN.