Stock of the day: Deutshe Wohnen

By Tomasz Wisniewski|

Published: August 19 2022, 08:47 GMT+0

Stock of the day: Deutshe Wohnen

In today’s analysis, we’re looking at a company we haven’t previously mentioned on our portal – Deutsche Wohnen. This is a German property company which trades within the DAX30 index. The reason we’re showing you this instrument is that we’ve found a decent sell signal here.

The bearish sentiment here is mostly due to two reasons. The first one is that the price recently ended a bullish correction on the 25 EUR resistance, which was an absolutely crucial support in May. In addition to that, the recent correction was shaped like a flag and today, we are witnessing a breakout from this flag – to the downside.

The price breaking the lower line of the flag officially terminates the mid-term up trend and opens us a way towards new lows. The target is pretty clear – the area above 20.6 (blue), so lows from June and July. With the current sentiment, chances that we’ll get there are quite significant.