Stock of the day: Lufthansa

By Tomasz Wisniewski |

Published: August 04 2022, 10:37 GMT+0

Stock of the day: Lufthansa

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One of the biggest gainers today has been Lufthansa. The company posted better than expected earnings, showing that despite some problems, they’re doing quite well.

Along with not-so-bad earnings, Lufthansa is very optimistic about the whole of 2022. Where other companies from the sector are firing people, Lufthansa is thinking about increasing its hiring in the upcoming months.

So, is the situation on the chart also optimistic for the German carrier? Yes!

Lufthansa beautifully defended the 5.2 EUR support (yellow) and created a very handsome inverse head and shoulders pattern (green). Today’s rise allowed the price to break two crucial resistances. One of them is the neckline (black) of the afore-mentioned iH&S pattern, and the other is the long-term down trendline (red).

With the price being above those two resistances, sentiment is positive. The target for LHA is on the 7.8 EUR, so its highs from February. Chances that we’ll get there are quite high.

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