Stock of the Day: BMW

It’s not that I am such a big fan of cars but in this piece, I will analyze another carmaker. Well, I can say that I am a fan of clean, nice price action setups. Ladies and Gentlemen, here is the analysis of BMW.

The situation on this German carmaker, does not look particularly good. What we have here is a big head and shoulders pattern (yellow), which is already up and running, as of few days ago, the price broke its neckline (red). That’s not where the trouble ends. At the beginning of August, BMW broke the long-term uptrend line (blue), effectively placing us in a bearish trend.

Ok, now the positive news. Not much to be honest with you, just one. The price is defending the highs from November and December. Its not much but maybe it’s a good start. The bearish sentiment will be cancelled, when the price will come back above the red line but chances for that happening now are rather limited.