Stock of the day: RWE

In today’s analysis we are shifting our attention to Frankfurt, where on the local exchange, you can find RWE -a company from the energy sector. Here, we can see a very interesting bullish situation, which goes in line with the recent risk mode on, which can be seen on the market.

For the past few months, RWE is successively climbing higher, breaking new resistances. The first one was the 34 EUR level which was broken in November and the next one was the 36,6 EUR level which was broken in January. Since the latest breakout, the price entered a correction mode, which was shaped like a flag (red lines). The flag ended yesterday with another surge and actually that rise is the reason why we chose this analysis today.

Yesterday’s breakout, brings us a proper buy signal on RWE. The positive sentiment stays here, as long, as the price stays above the 36,6 EUR support. A comeback below that level is of course possible but not really probable at the moment.