Stock of the day: Philips

Today, Philips, one of the biggest companies in the Netherlands, listed on the Stock Exchange in Amsterdam. We’re featuring it for the first time on our portal but it definitely won’t be the last time.

There are two reasons why we’re mentioning Philips today. The first one is that movements here are, in general, very technical and the second one is that we’re very close to a good sell signal.

Philips is definitely in a proper down trend. This down trend is regularly paused by handsome correction patterns. The first one was a flag, then we had a rectangle and a flag again. Currently, the price is inside of the wedge which in theory should result in a breakout of its lower line. A breakout, would trigger a proper, mid-term sell signal, which could potentially bring a movement, which would very likely set new long-term lows.

As long as we stay inside of the wedge, the sentiment remains positive, but definitely not positive enough to think about a long-term buy signal. Currently, the biggest chances are for the breakout to the downside and that is our base scenario for PHIA.