Stock of the day: Vinci
20 April 2023
In today’s analysis, we have a first-timer here – Vinci, a French company that is a world leader in concessions, energy, and construction, active in more than 120 countries. We just made the long-term highs here today but this may be actually a start of a bearish correction, let me explain why.
First, let’s describe the situation on the chart. We can see that the recent upswing was technically caused by the giant inverse head and shoulders pattern (yellow), which developed on the chart in March. This week, the upswing and the bullish momentum led to the breakout of the key horizontal resistance at 109.8 EUR (pink). This area was the top in February, March, and last week. The breakout is a strong buy signal, but…
There is a chance that this breakout is a false one. Today, on a daily chart, the price created a shooting star and if the price will close a day below the pink support, we will actually get the false breakout pattern (green), which would mean a proper signal to sell. Let’s wait and see what will happen here tomorrow but I wouldn’t be too optimistic about the future of the price here in the next few days.