Stock of the day: Deutsche Post

Monday was a real rollercoaster ride for global indices. We started with a huge decline during the Asian session and the first half of the European one. Then, stocks reversed and the American session ended up on local highs. V-shaped reversals like this are very often an invitation for a bullish movement. Let’s see if that’s the case now. Today, we’re taking a closer look at Deutsche Post listed on the Stock Exchange in Frankfurt.

Here, we don’t have a trading signal yet but we are about to get one really soon. On the daily chart, we see a very healthy uptrend, which, since September, is in correction mode. For now, this is a very small correction as the price managed to retrace only 23,6% of the uptrend. The volatility drops and DPW is moving rather sideways. The most important support is the one mentioned, 23,6% and the most important resistance is the mid-term downtrend line (red) and the monthly highs from December (blue).

As long as we are in between them, there is no trading signal yet. The price breaking the blue line will be a signal to buy and the price breaking the 23,6% will be a signal to sell. For now, we have to remain patient.