Stock of the day: Continental

Our pick for today is Continental, where the current setup is as clean as a whistle! This is one of the largest tire manufacturers in the world and it has a very handsome sell signal on the chart, which was actually triggered few hours ago, just when the German market opened after the weekend.

On the chart, you can see a large symmetric triangle pattern (blue), which started in March. Over time, volatility was decreasing and the price was making higher lows and lower highs – until Friday. The new week started with the breakout to the downside, which gives us a proper sell signal and that would be it, just like that.

The sell signal will be cancelled, if the price comes back inside of the triangle but chances for that are rather limited. The targets for the current downswing are lows from May and the ones mentioned before – from March, at around 56 EUR.