Stock of the day: Allianz

What a week it’s been! Black Friday became Red Friday and the vast majority of risky assets on the market collapsed. After the weekend, we’re coming back to a slightly better mood. Apparently, the new strain is not so deadly with mostly mild symptoms reported, and the financial market is trying to recover. In today’s analysis, we’re coming back to Allianz, which I had previously analysed more or less one month ago.

Back then, I was, generally bullish but wasn’t totally convinced and expressed my concerns on the bullish momentum. The price indeed was climbing higher in the first half of November. Afterwhich, we had a few not-so-scary bearish sessions and then: Red Friday, which saw us wiping out our whole gains from October!

What’s the situation now? On the chart, we have a giant head and shoulders pattern (yellow) and we’re currently on the neckline (blue) of this formation. In addition to this, another support, which we’re touching, is the long-term up trendline (black). If Allianz wants to use the global improvement of the sentiment, then it should be right here right now as the place for that cannot be any better. Once the daily candle closes below those two, that will be it – a major long-term sell signal. But as long as we stay above, there is still hope.