Stock of the day: Deutsche Telekom

We end 2021 with the analysis of the Deutsche Telekom, which I analyzed for the first time in September. Back then, the sentiment was positive and I was optimistic about the future price of this asset. Reality negatively verified my view. Instead of climbing higher, DTE entered the correction phase.

Today, we meet again because there is a big chance that the bearish correction has ended and buyers will have a chance to purchase DTE using attractive, lower prices. Correction is about to end as the price is currently trying to break the upper line of the wedge. Price closing a day above the upper red line would mean that buyers are ready for another bullish wave. Anther thing, which is supporting this view, is the fact, that the price bounced from the crucial horizontal support on the 15.6 EUR (orange). In addition to this, we did this with a double bottom formation.

All that allows us to think that next few days and weeks for Deutsche Telekom should be positive. Bullish sentiment will be cancelled when the price will break the 15.6 EUR support but chances for that are rather limited.