Stock of the day: BASF
03 February 2023
The last day of the week brings us an update about the situation on BASF. Last time, we wrote a piece about this instrument at the beginning of January, when the price was around 47 EUR and was having a very promising buy signal. This is how we concluded this article:
“Currently, after escaping from the flag pattern (black) to the upside, the price is above that support and is having a very promising buy signal. If buyers will manage to close a day and a week above the yellow area, we will get a proper buy signal here”
Well, that was spot on as BASF climbed higher almost immediately reaching the monthly high of 53.3 EUR. Only the first few days of the month were seeing an aggressive upswing though. For the rest of the time, the price settled in a pennant formation, in reality moving only sideways. That ended yesterday with a very nice move to the upside and a bullish breakout from the pennant formation. With that, we received a fresh buy signal, which potentially can add a few more Euros to the price.