Stock of the day: Iberdrola

By Tomasz Wisniewski|

Published: December 30 2021, 09:56 GMT+0

Stock of the day: Iberdrola

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As Axiory’s offering is getting bigger, we are going to see analyses of new instruments here. Some of the companies may be completely new to you and that would be totally understandable. Today, I will analyse the technical situation of Iberdrola, a Spanish energy company, listed on the Frankfurt Stock Exchange in Germany. Yes, it’s probably the first time you hear of this enterprise and that’s okay. What’s great here is that technical analysis work everywhere!

Iberdrola starts Thursday with a nice upswing. An upswing which is technically significant, as it breaks an important dynamic resistance. This resistance is a blue down trendline connecting recent lower highs. It seems that this breakout is ending the bearish correction which started after the price created a head and shoulders pattern (yellow with red neckline). It looks like the whole bearish potential that is coming from this H&S formation has vanished and now the only power left is a bullish one.

The price closing a day above the blue line will be a legitimate buy signal. On the other hand, the price closing a day below the blue line will be a signal to sell, so we have to be patient and wait for the end of the European session.

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