Stock of the day: Continental
14 June 2023
In today's analysis, let's shift our focus to Continental as we observe the European indices striving to catch up with their American counterparts. Continental, a prominent company, has been trading within a sideways range, forming a rectangle pattern since mid-March. The lower boundary of the pattern provides support, residing around 62 Euros, while the upper boundary acts as resistance, located near 70 Euros.
However, an encouraging development took place yesterday as the price successfully broke above the resistance level, triggering a buy opportunity. This breakout signifies a potential shift in market dynamics for Continental. Today's trading session has exhibited a bullish sentiment, characterized by the formation of higher highs and higher lows, providing further confirmation of the buy signal from the previous day.
As long as the price remains above the support level at 70 Euros, the overall sentiment remains positive for Continental. It is crucial to closely monitor the price action and be attentive to any potential shifts in market dynamics. While a drop below the support level could invalidate the buy signal and introduce the possibility of a false breakout, the likelihood of such an occurrence at this stage appears minimal.