Stock of the day: Fresenius

Thursday brings us to an analysis of Fresenius, a German company belonging to the health sector. We don’t cover the sector very often, so we hope you find this analysis useful (which is our main hope for every analysis we share)

The reason we’re mentioning Fresenius today is that the price respected a crucial resistance and is ready for another bearish wave, so we see a legitimate bearish occasion.

Let me explain in a more detail. The price is on the down trendline. A few days ago, sellers managed to defend the long-term down trendline (blue). The bullish correction also ended on the crucial Fibonacci resistance – 38,2% (green). A bounce from these two resistances combined shows us a local win for sellers.

This local win is in line with the main, long-term, bearish sentiment. As a consequence, it gives us a proper sell signal. Negative sentiment is here to stay, as long as the price stays below the yellow resistance. The price climbing back above that area would be a strong buy signal, but that scenario is currently less likely to happen