Stock of the day: Saint-Gobain

By Tomasz Wisniewski|

Published: July 21 2022, 12:09 GMT+0

Stock of the day: Saint-Gobain

Markets are in a positive mood so we’re finding more and more buying occasions among stocks. Today, we come back to Saint-Gobain, a French company, which we last mentioned in June. Back then, the price was around 53 EUR and we saw a nice bearish setup, so our view was negative:

“The sentiment remains negative and the current price has a bigger chance for a breakout of the black support rather than a sustainable bounce. My view on Saint-Gobain is negative.”

That was spot on as the price collapsed almost immediately, and over the course of one month dropped from 53 to 39 EUR! It seems like it’s dropped enough for now and SGO has matured to a mid-term buy signal. Optimism is coming from the fact that the price created an inverse head and shoulders pattern (orange) and has already broken its neckline (black). In theory, the breakout of the neckline brings us a buy signal and it actually looks legitimate.

It’s worth mentioning that SGO already followed a head and shoulders pattern (yellow) before and the results were pretty spectacular, so why not to repeat that?

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