Stock of the day: Zalando

In today’s analysis, we have Zalando, which probably gets pretty famous around Christmas. I guess that many of you are using this site for Christmas shopping, which makes perfect sense. Zalando is currently one step from a major buy signal.

On the chart, we can see a beautiful Inverse Head and Shoulders pattern (yellow), which started its formation in June. The price is currently finishing the right shoulder and for a legitimate buy signal, we need to see the breakout of the neckline first, Neckline is the red dynamic resistance connecting the most recent higher highs.

Apart from the neckline, we have another key resistance – a long-term down trendline (black). As long as we stay below those two, there is no buy signal. Price closing a day above the red line (and in consequence above the black one too) will bring us a strong, long-term buy signal. Let’s wait what the next few days will bring us.