Stock of the day: Siemens

Today, there’s a new guy in town, a company we haven’t analyzed before that’s coming in with a proper buy signal – Siemens. I don’t think we need to introduce this German company to anyone, so we’ll get straight to the point.

Yesterday, Siemens broke an important dynamic resistance, which was connecting the most recent lower highs. At some point, we can consider it as an upper line of the symmetric triangle since the lower one can be the long-term up trendline connecting lows from March 2020 and July 2021.

This breakout is a technical invitation to go long. Currently, we’re on all-time highs and it’s believed that there’s no better place to be than the all-time highs. Yes, the trend can reverse but it’s not very likely that will happen precisely so the chances for a continuation are quite significant, especially since we’re escaping from the five-month consolidation. That can give additional fuel to the breakout, once it’s finally happening.

The buy signal stays here, as long, as the price stays above the upper red line.