Stock of the day: Zalando

Yesterday’s heat map for the global stock market was almost entirely green. We saw rises on tremendous companies and on those which were forsaken by the traders’ community. A quick scan of the markets gives us a lot of trading occasions, some of them obvious and some of them not so much. In today’s analysis, I’ll show you an instrument where a lack of demand is really striking – Zalando.

We’ve mentioned Zalando twice already. The last time was at the beginning of June. The moves then were extremely technical. A clean downtrend with perfect bullish corrections. Back then, we were inside of the wedge and we were expecting another breakout to the downside. It did happen and the price went lower reaching 20 EUR at the end of June.

Today we’re here because Zalando, for the first time, is showing us a willingness to rise! And it’s not just a correction, it really looks like a reversal. Well ok, it’s not really spectacular. The price just broke the 27 EUR resistance (green) and the down trendline (black). It’s good for a start and what has to happen now is that the price has to hold above those two, at least until the end of this week. Once done, we’ll receive a proper buy signal. If not, and the price drops below those supports, we’ll come back to the dominant bearish trend. Let’s see what the last two days of the week will bring us.