Stock of the day: Unibail-Rodamco-Westfield

If that’s how the rest of the year will look like then stock traders will definitely grow a lot of gray hair in the next 11 months. Big companies, which normally trade around 2% a day are being pumped or dumped like penny stocks. Yes, we do have an earnings season but in general, we shouldn’t be experiencing such volatility, unless we’re in a bear market as this is one of its features.

In today’s analysis we will focus on Unibail-Rodamco-Westfield (URW) – the largest commercial real estate company in Europe. On the chart we have many lines, so let’s get straight to it. Our sentiment is bearish and currently, the price is defending the last crucial dynamic support (blue). A breakout of that support, will be a final confirmation for a sell signal here.

How did it start? URW created an inverse head and shoulders pattern (green), which was bullish. The price even managed to break the neckline (black), which in theory gave us a buy signal. In theory because we quickly found out that it was a false breakout (yellow), so in consequence a fake signal, which was quickly denied.

So, we do have an expired and abandoned bullish sentiment and the latest drop, which has only one support to break. For me, that is bearish and I think that in the next few days or weeks, URW will be trading lower.