Stock of the day: Allianz

Allianz, one of the biggest insurance companies in the world, is our pick for today’s analysis. We can see a very handsome bullish opportunity here, so let’s waste no time and get straight to the point.

The middle of September was terrible here, as the price managed to break the long-term up trendline (black) and the horizontal support on the 190 EUR (gray). That was very negative, and for many traders, it was a proper sell signal. As we now know, that was a false breakout, and this false breakout (orange) is actually one of the reasons why we are bullish now.

The price managed to perform a V-shaped reversal and flawlessly came back above the crucial supports. For sure the lower line of the wedge (lower green) helps here as this pattern is bullish. So now, we’re back above the up trendline and the crucial horizontal support on 190 EUR. We also broke the upper line of the wedge (upper green), which gives us another confirmation of the positive sentiment.

With all that in mind, we’re optimistic about this asset and we think that the next few weeks should be bullish.