Stock of the day: SAP

In today’s analysis, I would like to talk about SAP, one of the biggest IT companies in the world. SAP is traded on the Frankfurt Stock Exchange in Germany and this is the first time we will be analyzing it.

If you think that we are here because we’re optimistic about this company you’re wrong, the technical situation on this instrument does not look encouraging. SAP is currently in a bearish mood, strongly influenced by the double top formation (grey area). This double top, is in the same time a false breakout above the horizontal resistance on the 127.3 EUR level. It’s a false one because the price already came back below. That is not all bad news. SAP is currently breaking the mid-term up trendline (red), which can be considered a rather pessimistic sign.

With all this, our view on this instrument is negative. It would become positive if the price climbed back above the yellow area but chances for that happening now are rather limited.